Connect Airways Announces Offer For Flybe – Quick Facts

The Boards of Flybe Group plc (FLYB.L) and Connect Airways announced they have reached agreement on the terms of a recommended cash offer for Flybe by Connect Airways pursuant to which Connect Airways will acquire the entire issued and to be issued share capital of Flybe. Flybe shareholders will be entitled to receive: one pence in cash for each Flybe Share which values the entire issued and to be issued share capital of Flybe at approximately 2.2 million pounds.

Connect Airways is a joint venture company the share capital of which is owned 40% by DLP Holdings, a company wholly-owned by funds managed by Cyrus, 30% by Stobart Aviation, a wholly-owned subsidiary of Stobart Group, and 30% by Virgin Travel Group Limited, a wholly-owned subsidiary of Virgin Atlantic, the holding company of Virgin Atlantic Airways Limited and Virgin Holidays Limited. Immediately prior to completion of the acquisition, Connect Airways will acquire Stobart Air, Stobart Group’s regional airline and aircraft leasing business.

Cyrus, Stobart Group and Virgin Atlantic have committed to make available a 20 million pounds bridge loan facility to support Flybe’s ongoing working capital and operational requirements. Following completion of the acquisition, Cyrus, Stobart Group and Virgin Atlantic are intending to provide up to 80 million pounds of further funding to the combined Group to invest in its business and support its growth, as well as a contribution of Stobart Air.

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