NewERA, a non-statutory body, has been established to maximise the State’s return in State-owned companies. It will be responsible for considering and managing any proposed assets sales and will also have authority to decide on dividend policies, together with pension and pay levels within the companies.

NewERA has been requested to consider the sale of the State’s 25% shareholding in Aer Lingus, which is currently estimated at €89 million. The Department of Transport has said that a decision on whether to sell will be taken at the end of the year following a full valuation of the stake. It is reported that any sale would have to be at a premium to the current share price. Interested parties are understood to include International Airline Group, Air France and Lufthansa.

The Government is to sell a minority stakeholding in ESB, the national electricity provider. It is reported that the sale is likely to take place next year and options such as a trade sale and an IPO are being considered. A cross-departmental group, including representation from NewERA, established to consider the sale of the minority shareholding is due to report to the Government on 30 November 2011. We will continue to monitor and report on the proposed sale.