Greybull Capital has been confirmed as the preferred bidder to acquire Monarch from the group’s shareholders, principally the Mantegazza family.
Completion of a deal remains subject to the successful outcome of ongoing negotiations but could be concluded by the end of October, the airline and travel group announced.
Greybull then intends to provide “significant capital” to Monarch in order to grow the group and to capitalise on the long-established and trusted brand name, a statement said this morning.
Greybull has a focus on investing in private companies across a diversified range of industry sectors.
“It views an investment in Monarch as a long-term opportunity in a very strong brand with great potential in all of its markets, and intends to be supportive shareholders throughout Monarch’s next chapter,” the statement said.
“Conditional upon the successful conclusion of these negotiations with Monarch stakeholders, a transaction is expected to complete towards the end of October.”
The group revealed in August that it was carrying out a strategic review and identified a number of cost reduction initiatives that needed to be addressed in order to compete effectively in the scheduled European short-haul low-cost market.
A number of unspecified initiatives have been set in motion to create a far stronger group with the support of employees, unions, third-party suppliers and regulators.
No details of the financial terms were disclosed.