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EasyJet readies plan to limit rights of non-EU investors in no-deal Brexit

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EasyJet readies plan to limit rights of non-EU investors in no-deal Brexit

British air carrier easyJet PLC said it could suspend the voting rights of some non-EU shareholders on a last-in, first-out basis as part of its contingency plan to comply with EU ownership and control requirements in case Britain is unable to leave the bloc with a deal.

On March 13, the EU adopted regulations that allow airlines six months to make sure they are majority owned by EU nationals to be able to operate within the EU after the U.K.'s departure.

The airline said its EU ownership has risen to 49.92%. It hopes to set a cap on non-EU ownership, according to the provisions of its articles of association, such that those holders' voting rights can be suspended if EU ownership declines below 50.5%.

This follows just over a week after Ryanair Holdings PLC announced that it will treat all common shares held by or on behalf of U.K. nationals as restricted shares in case of a no-deal Brexit.

On March 19, the European Council adopted additional temporary contingency measures to mitigate the impact of a no-deal Brexit to industries such as transport, fisheries and dual-use items, as Michel Barnier, the EU's chief Brexit negotiator, called for all preparations for a no-deal Brexit scenario to be finalized.

The EU offered to postpone the U.K.'s departure from the bloc until May 22 if the U.K. Parliament hammers out a Brexit deal in the next week, as well as a new brake against a no-deal exit that gives London until April 12 to decide on its course of action if its lawmakers again fail to reach an accord.