Excel stake up for grabs

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).