Wizz Air shares fall as Indigo Partners sells stake
Shares in low-cost carrier Wizz Air fell by more than five per cent in early trading this morning as Indigo Partners said it would divest half of its stake in the airline.
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The US private equity firm, which also owns stakes in American Frontier Airlines and Chilean low-cost airline JetSmart, sold just over 7.69 million shares in a placing.
The shares were sold to institutional investors by way of an accelerated bookbuild at £52 each, raising gross proceeds of around £400 million.
Following completion of the placing, Indigo will hold 7.3 million shares in Wizz Air, down from 15 million, or a stake of 17.5 per cent.
The share placing is due to be completed by Thursday, according to Barclays Bank, which is acting as the global co-ordinator on the deal.
Wizz Air said it will not receive any proceeds from the transaction.