Wizz Air top shareholder to sell shares worth 500 million pounds

(Reuters) – Wizz Air’s (L:) largest shareholder private equity firm Indigo Partners plans to sell shares worth 500 million pounds ($650 million) via an accelerated bookbuilding process, the bookrunner on the sale said on Monday.

The Indigo shareholders own 20.6% of Wizz Air, which is worth about 624 million pounds based on Monday’s closing share price. Veteran low-cost airline investor Bill Franke is Indigo’s managing partner and founder and is chairman of Wizz Air.

The shares will be offered to institutional investors.

The share sale comes just days after the European low-cost airline upgraded its annual profit forecast after a strong third quarter performance when it carried more passengers.

European short-haul airlines have benefited from strong travel demand in recent months, with Europe’s biggest budget airline Ryanair (I:) and second biggest easyJet (L:) both upgrading their outlooks in January.

The number of ordinary shares the Indigo shareholders will hold after the placing will be announced following completion of the bookbuilding process.

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