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Icelandair has released the following statement regarding the mutual decision to cancel Icelandair’s takeover of Wow Air:

November 29, 2018 04:00 ET | Source: Icelandair Group hf.

The acquisition of Icelandair Group of Wow air, based on a purchase agreement signed on November 5th, has been cancelled. Both parties agree on this outcome.

Icelandair Group hf. issued a stock exchange release last Monday, November 26th, stating that the company estimated that it would be unlikely that all of the conditions in the share purchase agreement would be fulfilled by the shareholders’ meeting on November 30th. That situation remains unchanged.
Therefore, it is unlikely that the Board of Directors of Icelandair Group can recommend to the shareholders that they agree to the purchase agreement. Furthermore, the Board does not intend to submit to the shareholders’ meeting a proposal to postpone decision-making on the purchase agreement.

Due to this this situation, both parties agree to abandon the aforementioned purchase agreement.
Icelandair Group will hold its shareholders’ meeting on Friday, November 30, as previously announced. An authorisation proposal for the Board to increase the share capital of Icelandair Group is on the agenda of the shareholders’ meeting.

Bogi Nils Bogason, Interim President & CEO of Icelandair Group:
“The planned acquisition of Icelandair Group of Wow air will not go through. The Board of Directors and management of both companies have worked on this project in earnest. This conclusion is certainly disappointing. We want to thank WOW air‘s management for a good cooperation in the project during recent weeks . All our best wishes go out to the owners and staff of the Wow air. “

Skúli Mogensen, CEO and Founder of Wow air:
“It was clear at the outset that it was an ambitious task to complete all the conditions of the share purchase agreement in this short period. We thank the Icelandair Group’s management team for this challenging project, and also wish the management and staff of Icelandair Group all the best.”

Further information:
Bogi Nils Bogason, Interim President & CEO
bogi@icelandairgrop.is

Following the news of the cancelled deal, it has been reported that budget airline roup Indigo Partners has agreed to buy a stake in the struggling discount carrier.

Click the link below for the full Indigo Partners-Wow Air story!

Indigo Partners invests in Wow Air

NEW YORK (Reuters) – Ryanair Holdings Plc (RYA.I) and longtime Chief Executive Michael O’Leary have been sued in New York by a shareholder that said Europe’s largest airline defrauded investors and inflated its share price by overstating its ability to manage labour relations and keep costs down.

The complaint was filed on Tuesday night in the U.S. District Court in Manhattan by an Alabama pension fund, seeking class-action status and damages for investors in Ryanair’s American depositary shares from May 30, 2017 to Sept. 28, 2018.

Ryanair did not immediately respond on Wednesday to requests for comment.

The complaint said Ryanair misled investors in regulatory filings and conference calls about its labour stability, including “industry leading” contracts with pilots and cabin crews, and its positive impact on operations.

It said the truth came out as labour unrest forced the Dublin-based low-cost carrier last December to recognise unions for the first time, and led this summer to costly strikes that stranded thousands of passengers in several countries.

“Unbeknownst to investors, the company’s historical profit growth was built on an undisclosed and unsustainable foundation of worker exploitation and employee turnover,” the complaint said. “The decline in the price of Ryanair ADSs was the direct result of the nature and extent of defendants’ fraud finally being revealed to investors and the market.”

Ryanair cited labour issues on Oct. 1, when it cut its full-year profit forecast. Its share price closed that day more than one-third below its level in mid-March.

O’Leary, Ryanair’s chief executive since 1994, said last month he hoped to reach labour agreements with all of the carrier’s major unions before Christmas.

ADSs on June 30 accounted for 43.7 percent of Ryanair’s issued ordinary shares, assuming all were converted into ordinary shares, the company has said. Ryanair’s market value is roughly $16 billion, according to Refinitiv data.

The lawsuit was filed by the City of Birmingham Firemen’s and Policemen’s Supplemental Pension System. Its law firm Robbins Geller Rudman & Dowd specializes in securities fraud.

It is common for shareholders to sue companies in the United States after what they consider unexpected share price declines.

The case is City of Birmingham Firemen’s and Policemen’s Supplemental Pension System v Ryanair Holdings Plc, U.S. District Court, Southern District of New York, No. 18-10330.

(Reporting by Jonathan Stempel in New York; editing by Bill Berkrot)

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Ryanair, CEO Suit Filed In U.S. Court

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Ryanair, CEO Suit Filed In U.S. Court

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