Placing of Shares & Development of Web Site
Ryanair Holdings PLC
7 March 2000
RYANAIR EXPANDS FLEET AND ACCELERATES DEVELOPMENT OF RYANAIR.COM ITS LOW FARES
WEBSITE, AND PROPOSES TO RAISE IR£100M. THROUGH A PLACING
OF ORDINARY SHARES.
Ryanair Holdings plc 'Ryanair' or the 'Company', Europe's largest low fares
airline announced today (Tuesday, 7th March 2000) that it intends to place up
to 14.3 million new ordinary shares in the Company ('the new ordinary
shares'), representing approximately 4.3% of the existing share capital of the
Company. At the same time, Michael O'Leary, the Chief Executive Officer of
the Company, also intends to sell up to 5 million of the ordinary shares he
owns in the Company ('the existing ordinary shares', and together with the new
ordinary shares, the 'placing shares'). In total the placing shares represent
some 5.8% of the Company's issued share capital. Michael O'Leary currently
owns 36 million ordinary shares or 10.8% of the issued share capital of the
Company. The size of the placing is subject to increase by an additional 2
million ordinary shares through an over allotment option to be granted to the
underwriters.
The net proceeds from the proposed placing will principally be used to finance
the acquisition of 10 new Boeing 737-800 series aircraft, five of which will
be delivered in May and June of 2000, with five more being delivered in
December 2000 and January 2001. The funds may also be used to exploit
opportunities for the purchase of second-hand aircraft, and the Company
believes that there will be significant opportunities to acquire such aircraft
over the next 12 to 24 months. The airline will also be accelerating the
development of RYANAIR.COM its new internet website, which continues to grow
rapidly since its launch in the second week of January 2000.
The offering will be directed at both existing and new institutional investors
in Ireland, the UK and Continental Europe, with the intention of broadening
the company's European shareholder base. This announcement shall not
constitute an offer for sale in the United States. The placing shares to be
sold in the placing, have not been, and will not be, registered under the U.S.
Securities Act of 1933, and no offers or sales of such shares may be made in
the U.S. or to U.S. persons. The placing shares are being offered and sold
outside the United States in reliance under Regulation S under the Securities
Act.
Michael O'Leary, Chief Executive Officer of Ryanair Holdings plc said:
'As we indicated last month at the announcement of our third quarter results,
Ryanair continues to grow its business in a disciplined and profitable
fashion. We are facing into a period of great opportunity, as we have
recently announced eight new low fare routes from London to Continental Europe
for Summer 2000, and we will shortly take delivery of five new 737-800 series
aircraft to enable us to deliver this growth.
'The successful launch of RYANAIR.COM has the potential to transform both
Ryanair's business and European air travel. In February, which was our second
month of operation of RYANAIR.COM, the site has generated more than 24 million
hits, in excess of 12 million page impressions, and the current rate of
bookings are now running at 50,000 seats per week.
'Ryanair will continue to aggressively promote and market RYANAIR.COM by
offering Europe's lowest scheduled air fares exclusively through the internet,
and by investing a substantial advertising and marketing budget in its
promotion. We intend to make RYANAIR.COM the largest air travel website in
Europe. The successful combination of Ryanair's unique low fares, and our
marketing strength will, we believe, enable us to maintain our significant
rate of growth at a time when most of our competitors - be they flag carriers
or low fare carriers in Europe - are cutting back their growth, or
consolidating.
'Already RYANAIR.COM has delivered real and tangible cost reductions by
enabling Ryanair to bypass travel agency sales and CRS costs for a proportion
of our distribution, and has recently enabled us to reduce travel agent
commission to 5% with effect from 1 April next. The internet site also gives
European consumers immediate access to the lowest scheduled air fares in
Europe.
'We remain convinced that there will be opportunities to acquire good quality
second-hand aircraft over the next year or two, and we are continuing to
strengthen our balance sheet and our cash position so that we can exploit
these opportunities as they arise to the benefit of our passengers, our
employees and our shareholders. We also remain happy with current trading,
and are comfortable with the general range of analyst forecasts for the
financial year which ends on 31 March next.'
Morgan Stanley & Co. International Ltd., Davys Stockbrokers, and Goldman
Sachs will act as lead managers of the proposed placing. Details of the
number of new ordinary shares to be issued and the number of existing ordinary
shares to be sold, and the price at which the placing shares will be offered
are expected to be determined and announced on Thursday 9th March, following a
series of roadshow presentations of the Company in Ireland, the UK and
Continental Europe.
This announcement, which has been issued by and is the sole responsibility of
the Company, has been approved by Morgan Stanley & Co. International Limited,
which is regulated in the United Kingdom by The Securities and Futures
Authority Limited, solely for the purposes of Section 57 of the Financial
Services Act 1986. No offer or invitation to acquire securities is being made
now. Stabilisation/FSA.
Morgan Stanley & Co. International Limited is acting for the Company and no
one else in relation to the proposed placing and will not be responsible to
anyone other than the Company for providing the protections afforded to its
customers nor for providing advice in relation to the proposed placing.
This announcement does not constitute an offer of securities for sale in the
United States. Securities may not be offered or sold in the United States
absent a registration of such securities under the U.S. Securities Act of 1933
or an exemption from registration. Any public offering of securities in the
United States will be made by means of a prospectus that may be obtained from
the issuer or selling shareholders and that will contain detailed information
about the company and its management, as well as financial statements.
Tuesday, 7th March 2000
For further information
please contact: WWW.RYANAIR.COM - The low fares website
Howard Millar Pauline McAlester
Ryanair Murray Consultants
Tel. 353-1-8121212 Tel. 353-1-6633332
Latest directors dealings
- 21 hours ago Savannah Energy
- 22 hours ago Buccaneer Energy PLC
- 22 hours ago Savannah Energy
- 22 hours ago Carclo
- 23 hours ago Schroder Japan Growth Fund