IAG share price: Group unveils limit on non-EU shareholding

UK-resident investors not to be treated as non-EU holders

IAG share price: Group unveils limit on non-EU shareholding

British Airways and Iberia parent International Consolidated Airlines Group (LON:IAG) has unveiled a limit on its non-EU shareholding, with the UK currently expected to leave the European Union on March 29. The move comes after FTSE 100 peer easyJet (LON:EZJ) said last week that that it had lifted its EU ownership to 49 percent in preparation for Brexit.  

IAG’s share price has fallen deep into the red in London in today’s session, having given up 0.93 percent to 657.40p, underperforming the broader UK market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.32 percent higher at 7,151.99 points. The group’s shares have added just under nine percent to their value over the past year, as compared with about a 0.2-percent dip in the Footie.

IAG updates on shareholding

IAG announced in a statement today that the company’s share register had showed that the ownership of its issued shares by non-EU persons had reached 47.5 percent and as a result, the group’s board was placing a ceiling on non-EU shareholding at that amount.

The British Airways parent, however, confirmed that UK shareholders are not and will not be treated as non-EU persons, and will  not be subject to the restrictions on share acquisitions.

Analysts on FTSE 100 group

Liberum Capital reaffirmed IAG as a ‘buy’ today, without specifying a price target on the shares, while Credit Suisse, which is also bullish on the British Airways parent with a ‘buy’ rating, set a valuation of 780p on the stock yesterday. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 702.33p.

IAG is scheduled to update investors on its full-year performance on February 28.

As of 10:46 GMT, Tuesday, 12 February, International Consolidated Airlines Grp share price is 657.40p.

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