Flybe Group said today that it had agreed to sell its main trading company Flybe Limited and the digital company Flybe.com to the Connect Airways consortium made up of Stobart Aviation, Virgin Atlantic and Cyrus Capital for £2.8 million.
The UK regional carrier issued a statement this morning, where it revealed details of the recommended cash offer and said it had entered into a secured bridge loan facility with the shareholders of Connect Airways which agreed to make available to Flybe a committed credit facility of up to £20 million, subject to a number of conditions.
The Board of Flybe and Connect Airways said in a statement they have reached agreement on the purchase by Connect Airways of the Group’s main trading company, Flybe Limited (including Flybe Aviation Services Limited) and the digital company Flybe.com Limited for £2.8 million subject only to a limited number of conditions.
And a revised Bridge Facility of up to £20 million to provide funding to Flybe Limited, of which £10 million will be released today to support the business. In addition, a number of improved agreements with banks have also been reached today to improve liquidity.
Flybe added: “Furthermore, the consortium has confirmed to Flybe that its plans for the future of the Flybe business including the combination with Stobart Air remain as set out in the Recommended Offer including its commitment to provide £80 million of further funding.
“Flybe confirms that following its transfer to a Standard Listing which becomes effective on 17 January 2019, the Divestment will not require shareholder approval. The long stop date for the Divestment is 22 February 2019.
“The Board of Flybe believes that obtaining this revised facility from the Consortium provides the security that the business needs to continue to trade successfully. This preserves the interests of its stakeholders, customers, employees, partners and pension members.”
Joint venture company called Connect Airways is 40 per cent owned by Cyrus’ unit DLP Holdings and 30 per cent each owned by Stobart Group’s aviation unit and Virgin Atlantic – had won the backing of Flybe’s board to buy the airline.