The new owners of Flybe plan to adjourn “indefinitely” a general meeting due to be held next week, effectively denying a platform to a minority of shareholders opposed to the deal.
The acquisition of the regional carrier by Connect Airways – a consortium including Virgin Atlantic and the owner of Southend airport – was granted court approval on Friday.
The airline’s purchase by the consortium was approved at two previous meetings last week.
A majority of Flybe shareholders voted in favour of the offer of 1p per share or £2.2 million by Connect Airways, a holding company comprising Virgin Atlantic, Southend airport owner Stobart Aviation and US hedge fund Cyrus Capital.
The Connect Airways consortium already owns the airline Flybe, having paid £2.8 million for the carrier in a deal completed on February 22.
Dealings in Flybe shares were suspended from the London Stock Exchange yesterday (Monday) following the acquisition being competed under a scheme of arrangement.
A copy of the court order was delivered the Registrar of Companies today and has now become effective.
As sole registered shareholder of Flybe, Connect Airways intends that the general meeting planned for March 22 is “adjourned indefinitely”, according to a statement made to the Stock Exchange.
Under the rescue plan, Flybe will be rebranded as Virgin Atlantic but continue to operate independently.
Virgin Atlantic will own 30% of Connect Airways, Stobart Group 30% and Cyrus Capital 40%.
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