A CONSORTIUM led by US investor, Mr David Bonderman, has purchased 20 per cent of Ryanair from the Ryan family for £11.2 million. The sale values the privately owned airline at £56 million.
Announcing the deal yesterday, Ryanair chairman, Dr Tony Ryan, also indicated the group might now consider a stock market flotation to fund the expansion of its service within Europe.
The investors, who are all believed to be US based, purchased the 20 per cent stake through a specially created private investment company, Irish Air LP. A spokesman for Mr Bonderman refused to name the other investors, but most are understood to be part of Mr Bonderman's main investment vehicle, the Texas Pacific Group.
The deal does not provide Irish Air with an option to buy any further interest in Ryanair, Dr Ryan said. The Ryan family trust, which owns the airline, is not looking to bring any other investors into the company at the moment, he said. Dr Ryan's three sons - Declan, Cathal and Shane - also have an interest in the trust.
The new shareholders bring both financial and airline industry expertise which will allow the company to grow, according to Dr Ryan. But he added that the group might seek a stock market flotation to raise the funds it needed to acquire new aircraft and to speed up its rate of expansion in the European market.
"There are various methods of raising capital available to us, and I wouldn't exclude an IPO (an initial public offer of shares on the stock market)," Dr Ryan said.
Over the coming years, the airline will be looking to purchase up to 20 aircraft, which would require a "substantial investment", he said. Ryanair currently has a fleet of 14 Boeing 737 aircraft and expects to carry three million people this year.
There will be no changes to the existing management or operations of Ryanair following the deal, according to Dr Ryan. Mr Bonderman will join the board of Ryanair together with two of his associates, Mr Richard P. Shifter and Mr Geffrey Shaw, bringing the total number of people on the board to 10.
"Both the Ryan family and Irish Air remain fully committed to the successful team that has, been built up in the airline over recent years," Dr Ryan said.
The announcement of the sale of 20 per cent of the company follows months of speculation that the airline was about to bring in a partner. Mr Bonderman (53), who is currently chairman of Continental Airlines, the fifth biggest US airline, had emerged as the most likely buyer.
Based in Fort Worth, Texas, Mr Bonderman's business interests are spread across a number of sectors, including healthcare, entertainment, food, wine and commercial aviation.
He was previously linked to Mr Richard Branson's new low cost carrier, but is believed to have dropped out of the project before the consortium led by Virgin Atlantic bought 90 per cent of EuroBelgian airways.
Commenting on his interest in Ryanair yesterday, a spokesman said Mr Bonderman saw great opportunities for the company, particularly in the European market. "He sees that the European airline industry is at a turning point which offers real opportunities for a company like Ryanair," the spokesman said.
