Easyjet outlines 'no deal' Brexit contingency plan to comply with EU rules
Source - SMW
Easyjet said it stands ready to activate a contingency plan that would force non-EU shareholders to sell their shares in the company to EU nationals allowing the airline to comply with EU rules should the UK leave the bloc without a deal.
The company said it was ready to activate the plan, which would suspend shareholders’ voting rights in respect of a small number of shares on a 'last in first out' basis.
The contingency plan would take effect if EU ownership remains or falls below 50.5%
'Our EU (excluding UK) ownership had increased to 49.92%, however, this is still below the 50% plus 1 share that will ultimately be required following Brexit,' the airline said.
'To ensure there is some headroom for the company to maintain compliance with the EU ownership and control requirements, the permitted maximum will likely be set such that the contingency plan would take effect if EU ownership remains or falls below 50.5% (and therefore non-EU ownership remains above 49.5%).'
'The Board retains the right to activate the existing provisions of our Articles, which permit the Company to compel non-EU shareholders to sell their easyJet shares to EU nationals.'
On 13 March 2019, new EU regulations were adopted, which granted airlines 6 months to comply with applicable EU ownership and control requirements following a "no deal" Brexit, provided that an airline submitted an acceptable remedial plan. At 8:02am: (LON:EZJ) easyJet PLC share price was +10.25p at 1186.25p