It is understood that the government’s intention to retain ownership of at least 30% of the airline will also be communicated to the market, together with a complex proposal to protect the staff’s planned 14.9% shareholding.
Separately, The Sunday Times has learnt that there has been frantic bidding for shares among Aer Lingus staff ahead of the planned flotation. The staff currently hold 12.6% of the airline’s equity. These shares were distributed over the past 10 years of a profit-sharing scheme.
Staff traded shares through an auction process with PricewaterhouseCoopers last month. It is understood the shares changed hands at a price of more than €3.40, well in excess of prices achieved in previous auctions and in some cases more than twice the price originally sought.
On the basis of the auction prices, many staff already sit on nest eggs of €8,100.
The advisers will state that Aer Lingus plans to raise €400m to expand its fleet and a further €104m to plug an actuarial deficit in its pension scheme.
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The issue of the new shares will dilute both the government and staff shareholdings. The complex proposal to allow the employees to keep their existing stake involves the workers buying half the requisite num-ber of shares in the flotation.
These will be purchased with money already awarded under a profit-share scheme and through a portion of a pay increase awarded to workers under a new wages deal. The workers will receive a 4% increase in pay related to productivity and it is intended that 0.5% of the award will be used to buy shares in the flotation.
The government will then grant the employee share ownership trust (ESOT) an option over the rest of the shares required. This can be exercised at the IPO price any time over a period of five years.
These shares will be purchased from the proceeds of a new profit-share scheme linked to performance of the airline.
The options will carry voting rights, which the ESOT will control.