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Thread: Flybe Acquired by Virgin-led Consortium

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    Thumbs up Flybe Acquired by Virgin-led Consortium

    ATW Online; Friday 11 January 2019
    Virgin-led consortium acquires Flybe in $2.8 million takeover deal

    UK regional carrier Flybe will be rebranded as Virgin Atlantic under a £2.2 million ($2.81 million) takeover deal announced Jan. 11 by a consortium comprising Virgin Atlantic Ltd., Stobart Group and Cyrus Capital.

    Exeter-based Flybe said in November that it was seeking a buyer. The airline had run into financial difficulty as a result of high fuel costs, currency fluctuations and the uncertainty surrounding the UK's planned exit from the European Union. Virgin Atlantic confirmed later that month that it was in talks about a possible deal.

    In a joint statement, Virgin Atlantic, Stobart Group and Cyrus Capital said they had formed a new company - Connect Airways - through which they had reached an agreement with Flybe’s board to make a cash offer for the entire share capital of Flybe.

    Stobart Group, the parent company of Ireland-registered aircraft, crew, maintenance and insurance (ACMI) and charter operator Stobart Air, will fold its airline and aircraft leasing businesses into Connect Airways. The three companies have committed to provide a £20 million bridge loan facility, “to support Flybe’s ongoing working capital and operational requirements.”

    Read more at: http://atwonline.com/airlines/virgin...-takeover-deal

    By: Kerry Reals
    NS Comment: Arrangement looks brilliant. Hope it works out well for all concerned.
    I love this job

  2. #2
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    Default Re: Flybe Acquired by Virgin-led Consortium

    ATW Online; Friday 08 February 2019
    Flybe to wind up company if shareholders do not back takeover deal

    UK regional carrier Flybe has told shareholders it had to sell off its operating companies, or face administration, adding that the empty holding company will wind up if shareholders do not back Connect Airways’ takeover offer.

    Flybe is being acquired by Connect Airways, an acquisition vehicle owned by Virgin Atlantic, Stobart Group and Cyrus Capital. Under that deal, Connect Airways will acquire Flybe’s operating subsidiaries, without a shareholder vote. This will be followed by the acquisition of Flybe’s holding company, which requires shareholder approval.

    The structuring of the deal has attracted the ire of Hosking Partners, which manages 18.72% of Flybe’s shares on behalf of several investors. They are demanding answers on why an offer of £0.01 ($0.013) per share was recommended, at a time when the company was trading at £0.16 per share, and after Flybe rejected an offer of over £0.40 from Stobart last year.


    On Feb. 8, Flybe released formal details of the holding-company takeover offer to shareholders. The Exeter-based airline recapped the history behind the sale, saying it had been hard-hit by fuel and foreign exchange prices, coupled with pressure from credit card acquirers. If the card acquirers had put further pressure on Flybe’s liquidity, it would have jeopardized the airline’s ability to continue as a going concern.

    By: Victoria Moores
    Read more at: http://atwonline.com/airlines/flybe-...-takeover-deal

    NS Comment: Come on, Lady Gaga. Somebody will need a poker face here.
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