flybe. (2002) (Exeter) has announced that it completed the sale of its assets to Connect Airways, a consortium of Virgin Atlantic, Stobart Group, and Cyrus Capital as of February 21, 2019.
The consortium paid GBP2.8 million pounds (USD3.65 million) for flybe.'s assets. Following the completion of the transaction, Flybe Group plc is now a non-trading shell company which has no assets other than the proceeds from the transaction, which will be used to meet the remaining liabilities and shut the company down.
Connect Airways also pledged a GBP20 million pound (USD26 million) bridge loan and then an additional up to GBP80 million pounds (USD104.2 million) in fresh capital for the struggling regional airline.
A separate offer compensating the existing Flybe Group shareholders at GBP0.01 pound per share remains valid. Shareholders will vote on it on March 4, 2019.
"The Flybe directors strongly advise shareholders to vote in favour of the Scheme at the shareholder meetings on 4 March 2019 in order to receive the consideration under the Scheme of 1 pence per share as otherwise shareholders are likely to receive no value for their shares in the Company," the regional carrier said.
Even if shareholders do not approve the plan, the company intends to delist from the London Stock Exchange and close down.
During the course of the takeover, flybe.'s largest individual shareholder Hosking Partners LLP and Andrew Tinkler, ex-CEO of Stobart Group, opposed the takeover by Connect Airways, alleging undervaluation of the carrier.
