Ryanair plans to distribute the €398 million from the sale of its stake in rival Aer Lingus to shareholders.  Chief finance officer, Neil Sorahan, said on Thursday that the airline will distribute the money via a B-share scheme, under which investors will receive 29.4 cent a-share, a total of €398 million.

 

Speaking at the company’s annual general meeting in Dublin on Thursday, chief executive, Michael O’Leary, noted that if the airline gets the Revenue’s agreement, Irish shareholders - who own 8 per cent of the group - would pay capital gains rather than income tax on the distribution.

 

Its board voted last July to accept a €2.55 a share offer for its 29.8 per cent Aer Lingus stake from International Consolidated Airlines Group (IAG), owner of British Airways, Iberia and Vueling.

 

The vote signalled the end of of its own long-running battle to take full control of Aer Lingus, which met opposition from the Government and competition regulators. Ryanair lifted its full-year profit forecast 25 per cent this month as a wet August spurred a booking surge, leading to higher-than-expected fares.

 

That has helped fuel a 47 per cent share-price gain and brought Ryanair closer to catching Southwest Airlines by market value.

Gain new Investment skills with a Professional Diploma in Investment and Capital Markets