8th Mar 2019 13:45
LONDON (Alliance News) - Budget airline Flybe Group PLC on Friday said its acquisition by Connect Airways has been granted court approval.
On Friday, shares in Flybe were down 3.8% at 0.97p per share.
Connect is a joint venture among Stobart Group Ltd, Virgin Atlantic Ltd, and DLP Holdings SARL and will pay just 1 pence per share or GBP2.2 million for Flybe.
Flybe has already sold all of its assets and operations to Connect for GBP2.8 million so Flybe is currently a non-trading entity with neither subsidiaries nor assets.
In January, Flybe agreed to the GBP2.2 million takeover offer from Connect. Before the connect offer, Flybe had an approximate market capitalisation of GBP35.5 million based on a share price of 16.38p.
Connect had agreed to provide a GBP20 million bridge loan as part of the initial deal, but Flybe could not meet the terms and so the separate asset sale for GBP2.8 million was agreed.
On Monday, Flybe shareholders approval the deal with 63% of shareholders in favour versus 37% against. Shareholders had been advised to back the deal or receive nothing for their shares.
Flybe's shares will be suspended with effect from Monday.