(Reuters) – Wizz Air’s (WIZZ.L) largest shareholder, U.S.-based private equity firm Indigo Partners, carried out a long-time plan to cut its stake in the company as the Budapest-based low-cost airline works to comply with European Union ownership rules.
Bill Franke, founder and managing partner of Indigo Partners and a veteran American low-cost airline investor, is chairman of Wizz Air. Indigo cut its stake to 3.4% from 20.6%, according to the bookrunner on Tuesday.
Airlines must be more than 50% owned by European Economic Area nationals to operate flights within the bloc, otherwise the rights of non-EEA shareholders have to be restricted to allow operations to continue.
Wizz, which is focused on central and eastern Europe, said in April last year it was seeking more EU investors in order to comply with EU share-ownership rules or it could lose the right to fly within the bloc after Brexit.
JP Morgan, the bookrunner on the sale, said given Indigo’s shares were not held by EEA…
Source news reuters.com, click here to read the full news.