Ryanair’s London Stock Exchange Delisting​


By Patricia K​

What do you need to know this week?

Last Friday, Ryanair gave notice of its intention to delist from the London Stock Exchange (LSE). This marks an end for the company’s dual-listing structure as it becomes single-listed on Euronext Dublin (Ireland's main stock exchange).

So, why did Ryanair delist? In its notice, the company cited high costs and the low volume of trading on the LSE. This reduction in trading volume was highlighted in the company’s half-year report where it stated that ‘overall trading volume…reduced materially during 2021’.

Another important factor at play is Brexit. In particular, EU laws require that Ryanair remains majority EU-owned. However, following Brexit, EU stock ownership in Ryanair fell below the required 50%, leading Ryanair to announce that UK nationals could no longer acquire its shares. With this in mind, Ryanair’s delisting seems consistent with the company’s attempts at restricting British shareholders’ voting rights to comply with EU rules.

Why is this important for your interviews?

First, you're probably wondering: what happens after a delisting? Despite Ryanair’s removal from the LSE, shareholders will still hold their respective shares and will be able to buy/sell shares on the Dublin market. This reduces the impact on shareholders who won’t need to resort to the over-the-counter market.

What about the delisting’s impact on the LSE? Ryanair’s departure has been described as a ‘Brexit loss’ given that it's the first major company to explicitly cite Brexit as the reason for its departure. This acts as yet another blow for the LSE after BHP Group, the LSE’s second-biggest stock by market value, moved to a primary listing in Australia earlier this August.

How is this topic relevant to law firms?

Companies listed on public markets, such as the LSE, are subject to stringent regulations. Therefore, law firms provide valuable advice on whether clients stay in compliance with those regulations. Ryanair’s delisting will likely involve publicly-listed company advisory work from firms with strong public M&A practices.

Ryanair has previously been advised by Dentons.