Update: Flybe shareholders approve buy-out
Flybe’s shareholders are holding a general meeting today to decide whether to accept a takeover bid by a Virgin Atlantic consortium.
The sale of the UK regional carrier’s assets and operations to Connect Airways, which also includes Southend airport-owner Stobart Group, was completed two weeks ago for £2.8 million.
However, a separate 1p per share offer for the remaining shell company, also made by Connect Airways, remains on the table at a value of £2.2 million, or just 1p per share.
Shareholders are being urged to accept the offer at today’s meeting or risk receiving no value for their shares.
Flybe rejected an alternative proposal of £65 million from investors including US airline Mesa Airlines and a New York-based hedge fund last week amid attempts to disrupt the Connect Airways’ takeover by Flybe’s two largest investors.
Andrew Tinkler, former Stobart Group chief executive and Flybe’s second-largest shareholder, called Connect’s offer “an insult to the aviation industry”.
Flybe Group’s biggest shareholder, Hosking Partners, called the Connect Airways offer “cavalier”. It is seeking an investigation of the takeover process under a new Flybe chairman at the meeting.
Flybe, with a workforce of 2,500, has warned it will be wound up if the deal is not completed.
Update: Flybe shareholders approve buy-out
More: Updated: Flybe finalises asset sale to Virgin Atlantic consortium
Flybe acquired by Virgin Atlantic-led group
