LIBRA’s relationship with Excel Airways could be
coming to an end after the operator entered into talks with Air
Atlanta about selling its remaining stake in the charter
airline.
Air Atlanta, which purchased a 40.5% stake in Excel for nearly
£30 million in March, is keen to snap up the majority of
Libra’s remaining 39% stake.
If it succeeds, Air Atlanta will be required to make an offer
for the remaining shares held by Excel’s management, private
investors and institutions, taking the airline private again nearly
two years after it first floated on the Stock Exchange.
Although the two companies have not put a price on any possible
deal, a City statement released by Excel suggested it will be below
its current market value.
The news sent shares in the airline tumbling by a third, down to
110p.
Both Libra and Air Atlanta would not disclose what price would
be potentially paid for the 39% stake.
Proceeds from Libra’s previous share sale were used to
repay a £15.8 million loan to the airline (Travel Weekly March
1).