Wizz Air’s top shareholder Indigo Partners to sell shares worth of £500 million



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Wizz Air’s top shareholder Indigo Partners to sell shares worth of £500 million

Wizz Air, the Budapest-based low-cost Hungarian airlines that serves many cities across Europe, North America and Middle East, would likely to witness an en masse sell-off of its shares held by its largest stakeholder, private equity firm, Indigo Partners, while bookrunner on the sale was quoted saying on Monday, the 3rd of February 2020, that the 18-year-old Arizona-based American private equity firm, Indigo Partners, primarily centring its focus on budget airlines, would be selling off Wizz Air’s shares worth of as much as £500 million or $650 million through an accelerated bookbuilding process, a form of offering equities in the capital market that lasts for a limited period of time.

Besides, the bookrunner on the sale had also unveiled that the Indigo Partners’ shares would be offered to institutional investors, nonetheless, the American equity firm, that owns about 20.6 per cent of Wizz Air worth of £624 million, would still hold a minority stake of Wizz Air following its planned accelerated bookbuilding.

Although, Indigo Partners’ sales of nearly £500 million worth of stakes of Wizz Air might hint a holocaust for the Hungarian aviation giant, but shedding lights on the flipside of the coin, analysts were also quoted saying that latest sale of Indigo shares could help Wizz Air’s compliance with EU stakeholders following Britain’s departure from the European Union.