Flybe Group PLC Statement Regarding Media Speculation (9133O)
04 Febrero 2019 - 1:00AM
UK Regulatory
TIDMFLYB
RNS Number : 9133O
Flybe Group PLC
04 February 2019
Flybe Group plc
Statement Regarding Media Speculation
The Board of Flybe Group plc ("Flybe" or the "Company") notes
the recent media speculation and confirms that, on 1 February 2019,
Flybe received a very preliminary, short and highly conditional
outline contingency proposal from Mr Tinkler which envisages a
capital injection and replacement of the funding provided by
Connect Airways Limited (the "Preliminary Proposal").
Flybe confirms that its advisers have held an initial discussion
with Mr Tinkler's advisers in relation to the Preliminary Proposal
and that no formal proposal was made. For the avoidance of doubt,
the Preliminary Proposal does not contemplate an offer for the
whole of Flybe or any other acquisition structure.
The Board understands that the capital injection under the
Preliminary Proposal would only be provided by Mr Tinkler if the
sale of Flybe's operating businesses to Connect Airways Limited
("Connect Airways") in accordance with the share purchase agreement
dated 15 January 2019 (the "SPA") does not complete. The Board does
not consider that the Preliminary Proposal offers the certainty
required to secure the future of Flybe.
Accordingly, the Board emphasizes to shareholders that it
continues to regard the arrangements entered into with Connect
Airways as being the only viable option available to the Company
which provides the security that the business needs to continue to
trade successfully. The arrangements with Connect Airways preserve
the interests of Flybe's stakeholders, customers, employees,
partners and pension members.
Connect Airways is a joint venture company which is owned 40% by
DLP Holdings, S.à.r.l., a company wholly-owned by funds managed by
Cyrus Capital Partners L.P., 30% by Stobart Aviation, a
wholly-owned subsidiary of Stobart Group Limited, and 30% by Virgin
Travel Group Limited, a wholly-owned subsidiary of Virgin Atlantic
Limited, the holding company of Virgin Atlantic Airways Limited and
Virgin Holidays Limited. As part of its proposed acquisition of
Flybe, Connect Airways committed to make available a GBP20 million
bridge facility to support Flybe's ongoing working capital and
operational requirements. In addition, following completion it
intends to provide up to GBP80 million of further funding to the
Combined Group to invest in its business and support its growth, as
well as a contribution of Stobart Air.
Flybe continues to work with Connect Airways on the sale of
Flybe's operating businesses. The SPA is subject to only a limited
number of conditions and progress is being made to meet those
conditions. The SPA is subject to a longstop date of 22 February
2019.
Connect Airways has now provided the first GBP15 million of the
GBP20 million secured committed credit facility, as referred to in
the announcement of 15 January 2019. Flybe continues to receive
payments from its credit card acquirers in accordance with the
arrangements agreed at the time of the SPA being entered into. The
arrangements with the Company's credit card acquirers and banks are
important to enable Flybe to continue to trade and are conditional
themselves upon the SPA completing.
Following completion of the SPA, the Company will be a
non-trading entity with no subsidiaries and no material assets
other than the cash remaining from the GBP2.8 million consideration
received under the SPA, which will be required to cover transaction
costs and residual and rundown costs of the Company. It is
anticipated that, after meeting these costs, there will not be any
remaining funds available for distribution to shareholders.
Separately, Flybe shareholders will be receiving materials in
relation to the scheme of arrangement which will effect the
recommended offer of 1 pence per share made by Connect Airways for
Flybe Group plc on 11 January 2019. The scheme document and related
materials are expected to be posted to shareholders in the near
future and there will be a shareholder meeting to vote on the
scheme of arrangement not less than 21 days thereafter.
Enquiries:
Maitland/AMO
Andy Donald +44 (0)20 7379
Finlay Donaldson 5151
MAR
The information contained within this announcement is considered
by the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No.596/2014 ("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service, this inside information will be considered to be in the
public domain.
LEI Number: 5493005SC6523Y8KJF24
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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