Ryanair warns UK investors will be forced to sell shares

Ryanair has warned it will begin selling the shares of some of its UK investors after they broke its ownership rules that shifted after Brexit. The carrier said Wednesday it has appointed a broker to begin the forced sale of around 1m shares purchased this year by non-EU nationals, mainly UK nationals or institutions that bought the stock on their behalf. The airline has been forced into the drastic action by the UK’s departure from the Single Market at the start of the year. EU rules demand that airlines based in the bloc are majority owned and controlled by nationals of the bloc, Switzerland, Norway, Iceland or Liechtenstein. This enables airlines to fly freely between two destinations within EU borders. For nearly 20 years Ryanair has barred non-EU individuals from buying shares in the company, and reiterated its stance in the run-up to Britain’s departure. Institutions and individuals in the the UK have been prevented from buying new shares since the start of the year. UK shareholders who had held stock before January have been able to keep their holdings but are barred from attending or voting at annual meetings. The total held by UK investors amounts to a fraction of the more than 1.1bn Ryanair shares available on the market. Ryanair warned investors in February to begin disposing of their stock to comply with its rules. The airline said on Wednesday that the appointed broker will sell their shares in the market over the coming weeks, “independently of, and uninfluenced by, the company”. “The net proceeds of such sale(s) will be transmitted to the relevant investors in due course,” it added. It also said it could begin further forced share sales “from time to time” in the future, without warning.<br/>