Author Topic: RYAAY - Ryanair  (Read 4188 times)

elliott

  • Newbie
  • *
  • Posts: 23
Re: RYAAY - Ryanair
« Reply #10 on: September 10, 2019, 06:12:18 AM »
Current chairman David Bonderman, who has been in the board for quite a few years, leaves in 2020 to be replaced by Stan McCarthy who joined the company in 2017 - prior to that, Stan had no airline industry experience as far as I can tell - he has spent most of his professional career in the Kerry Group (Note: I am not sure Bonderman had airline industry experience when he joined the board, but that was in 1996, when the company operated only 12 aircraft).
The current CEO, the iconic O'Leary, will also be stepping down in the short term (his contract expires in 2024, so either then or before). O'Leary has been key to the success of Ryanair, and I wonder if his strong, almost blind focus in costs will be inherited by his successor.

So, will Ryanair continue to be the "lowest cost producer" in the markets it operates in after the departure of Bonderman and O'Leary?


UK

  • Full Member
  • ***
  • Posts: 100
Re: RYAAY - Ryanair
« Reply #11 on: September 19, 2019, 11:22:51 PM »
https://www.bloomberg.com/news/articles/2019-09-19/ryanair-freezes-payments-to-boeing-on-737-max-delivery-delays

"At the meeting Thursday, O’Leary said he’s not planning to retire soon. Yet the CEO also told reporters his priorities have shifted to wanting to spend more time with his family. “My life is changing,” he said. “In my thirties and forties all I wanted to do was work for Ryanair and spend all my life working. I cannot now spend all my life working.” Shareholders approved a bonus plan for the executive with a narrow 50.5% margin."

https://www.ft.com/content/3f0684b8-dab7-11e9-8f9b-77216ebe1f17

"The protest centres around options for 10m shares that were issued to Mr O’Leary in February and would pay out €99m if the company made a €2bn profit or its share price reached €21 over the next five years. Mr O’Leary admitted it was a “particularly sensitive” remuneration report. “We’re disappointed that the vote wasn’t higher,” he said. But the chief executive defended the share options on the basis that they aligned his interests with shareholders. “I don’t think there’s any investor in that room . . . that would begrudge a large number of share options if I doubled their investment in the next five years,” he told reporters. “If I don’t do it over the next five years, you don’t pay me anything at all. It’s a free bet for shareholders.”



UK

  • Full Member
  • ***
  • Posts: 100
Re: RYAAY - Ryanair
« Reply #12 on: October 01, 2019, 09:32:53 PM »
Ryanair Group CEO Michael O’Leary sits down with Reuters Tim Hepher to discuss challenges including industry-wide consolidation, environmental taxes, Brexit, the grounding of the Boeing 737 MAX and his 5-year, 100 million euro bonus package. Watch here the full event.

https://www.reuters.com/video/2019/10/01/reuters-newsmaker-full-event-ryanairs-ol?videoId=607123734

elliott

  • Newbie
  • *
  • Posts: 23
Re: RYAAY - Ryanair
« Reply #13 on: October 02, 2019, 02:21:44 AM »
Ryanair Group CEO Michael O’Leary sits down with Reuters Tim Hepher to discuss challenges including industry-wide consolidation, environmental taxes, Brexit, the grounding of the Boeing 737 MAX and his 5-year, 100 million euro bonus package. Watch here the full event.

https://www.reuters.com/video/2019/10/01/reuters-newsmaker-full-event-ryanairs-ol?videoId=607123734

Thanks for posting!

AJDelphi

  • Jr. Member
  • **
  • Posts: 72
    • Blog
Re: RYAAY - Ryanair
« Reply #14 on: October 08, 2019, 10:28:13 AM »
Anyone have a good explanation for why the ADR's trade at a 15-20% premium to the shares in London or Ireland? Seems like they historically have too.

I'm just going to buy it in London but was curious

Spekulatius

  • Hero Member
  • *****
  • Posts: 3245
Re: RYAAY - Ryanair
« Reply #15 on: October 08, 2019, 05:35:01 PM »
Anyone have a good explanation for why the ADR's trade at a 15-20% premium to the shares in London or Ireland? Seems like they historically have too.

I'm just going to buy it in London but was curious

There is no 20% premium, maybe you forgot about the GBp/USD exchange rate , which is currently 1.22.
RYA.L trades at 10.74x5x1.22=$65.5. There is a small premium, but it’s less than 1%.
To be a realist, one has to believe in miracles.

UK

  • Full Member
  • ***
  • Posts: 100
Re: RYAAY - Ryanair
« Reply #16 on: October 08, 2019, 09:26:32 PM »
But 10.74 is a price in EUR? Maybe ADR premium is related to foreign ownership limitation? Also it seems there is a new angle to this becouse of the possible hard brexit:

"Under current rules, at least half of Ryanair must be owned by European investors. The problem is, once the UK leaves Europe (and therefore UK investors are no longer considered European) Ryanair will not meet these criteria. UK investors are thought to make-up about 20% of Ryanair’s shareholder base and, without them, European investors will make up around 45%. This means Ryanair risks losing its right to operate in Europe if the UK leaves without a deal.

Ryanair has introduced severe measures to tackle the problem by announcing it could strip UK investors of their voting rights under a no-deal scenario to ensure it remains under the control of European investors. UK investors could also be banned from buying new stock (but they could still buy American Depositary Receipts (ADRs), which don’t carry any voting power) and, when they sell, be forced to offload them to European buyers. That would remain in place until it could rebalance its share register, so it is 55% owned by Europeans. Ryanair chief financial officer (CFO) Neil Sohoran has previously said this could take up to eight months. Only then would UK investors regain their voting power. The EU has said it would not impose the ownership rules immediately even under a hard Brexit, but airlines won’t have long to get their houses in order.

The other concern is that Ryanair plans to use its share buyback programme to rebalance its share register. It announced a new €700 million buyback but soon adjusted the terms to allow ‘block trades’, which would mean it would prioritise buying back UK-held stock. Originally, Ryanair planned to spend the bulk of its buyback budget (€500 million) on repurchasing ADRs.

Ryanair has been clear that a hard Brexit will be detrimental to UK-based shareholders. One question on a Brexit-related FAQ page on its website asks: ‘I’m not comfortable with the scenario where I lose voting rights, what are my options post a hard Brexit?.' Ryanair’s blunt response is: ‘There are no other options, you are free to sell your shares in the market at any time.’

It is important to stress that this is nothing more than a warning at present and only applicable if the UK leaves the EU without a deal. While that is still very possible amid the current political climate, some have criticised Ryanair’s drastic approach for what is still a hypothetical situation. IAG – which would be even further from complying to EU ownership rules under a hard Brexit – has been far more relaxed on the matter after Walsh shrugged off questions by stating he would solve the issue ‘by magic’."

« Last Edit: October 08, 2019, 09:38:45 PM by UK »

Spekulatius

  • Hero Member
  • *****
  • Posts: 3245
Re: RYAAY - Ryanair
« Reply #17 on: October 09, 2019, 06:19:12 AM »
London stock prices XX.L are in GBP. The brits never took on the Euro. One GBP=1.22 USD currently although Boris is working on bringing it to par. 😂
To be a realist, one has to believe in miracles.

UK

  • Full Member
  • ***
  • Posts: 100
Re: RYAAY - Ryanair
« Reply #18 on: October 09, 2019, 06:38:40 AM »
https://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/IE00BYTBXV33IEEURSSMU.html

Price (EUR)

However I have not found sure explanation why ADRs historically traded at the premium, but they themselves mentioned this situation in their fillings: "As the ADRs typically trade at a premium of 15% to 20% compared to Ordinary Shares, this may result in increased costs in performing share buy-backs in the future."
« Last Edit: October 09, 2019, 06:40:56 AM by UK »

Spekulatius

  • Hero Member
  • *****
  • Posts: 3245
Re: RYAAY - Ryanair
« Reply #19 on: October 09, 2019, 07:40:25 AM »
https://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary/IE00BYTBXV33IEEURSSMU.html

Price (EUR)

However I have not found sure explanation why ADRs historically traded at the premium, but they themselves mentioned this situation in their fillings: "As the ADRs typically trade at a premium of 15% to 20% compared to Ordinary Shares, this may result in increased costs in performing share buy-backs in the future."

Interesting and thanks for pointing this out. I didn’t know that shares in London trade indifferent currencies. Yes, I would absolutely buy in London. A 20% premium is absurd.
To be a realist, one has to believe in miracles.