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The sale of Flybe to Connect Airways Limited, a consortium of Virgin Group, Stobart and Cyrus Capital Partners, closed on Thursday, February 21st.
Originally announced on January 15th, the sale includes Flybe Limited and Flybe Aviation Services Limited. Connect Airways plans to operate under the Virgin brand while retaining existing AOCs.
The share transfer itself remains subject to shareholder voting on March 4, based on a cash offer of 1 pence per share (£ 0.01), but voting is not important for the control in progress. If shareholders vote to reject the offer, Flybe Group warns them that they might not receive any value.
"Flybe's badets and operations now belong to Connect Airways and Flybe flights continue to function normally," the Flybe Group said in a statement, adding that the group was now operating as "a non-trading entity without subsidiaries or badets the little money received under the [Sale Purchase Agreement], which is necessary to cover the transaction costs, transaction costs and residual costs of the company. He added that he did not anticipate that funds would remain available for distribution to shareholders.
Flybe, headquartered in Exeter, is the largest independent regional airline in Europe, carrying approximately 8 million pbadengers annually between 80 UK airports and the rest of Europe.
Stobart Air confirmed its interest in a public takeover bid on Flybe in February 2018, but Flybe's board of directors rejected the offer. However, by the end of last year, the airline's shares had dropped 75%, forcing it to consider a sale again.
In early January, a buy-out of £ 2.2 million was launched by the Connect Airways consortium, which had agreed to lend £ 20 million to Flybe to continue operations, while leaving £ 80 million available at the closing of the redemption.
Connect Airways had to increase its offer of £ 600,000 to obtain approval from the Flybe Board of Directors.
Flybe rejected a late alternative offer from Andrew Tinkler, former CEO of Stobart, and a second proposal from Mesa Air Group of the United States, seconded by Tinkler.
Connect Airways combines Flybe with Stobart Air, the new carrier with a fleet of nearly 100 aircraft. Most are Bombardier Q400s, of which Flybe was the world's largest operator.
His other aircraft are Embraer 195 and 175, ordered respectively in 2005 and 2010, and some ATR 72-600s.
In mid-2018, Flybe completed a review of its fleet requirements and in May 2018 announced that the Bombardier Q400 would remain its main aircraft. He decided to retire the 195 in service by 2020, while retaining E175s.
A regional airline that is growing steadily, but often disrupted, Flybe is the result of the new image of Jersey European Airways as British European Airways in 2000. In March 2007, Flybe bought BA Connect from British Airways, although the airline retained London City Airport services.
In December 2010, Flybe was listed on the London Stock Exchange with a stock market of 295 pence, worth 215 million pounds. He raised some £ 66 million to finance his expansion. He continued to exist in roughly the same form until he faced insurmountable financial difficulties in 2018.
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