22nd Feb 2019 17:24
LONDON (Alliance News) - Flybe Group PLC late Friday said it remains fully supportive of Chair Simon Laffin as a shareholder meeting to oust him from the board approaches.
At the beginning of February, Flybe received a request from its largest shareholder Hosking Partners LLP to call for a general meeting of shareholders in order to vote on two resolutions proposed.
Hosking asked for the removal of Laffin from the board and the appointment of Eric Kohn as a director.
Flybe will host the meeting on March 22.
The airline said it has not been able to confirm Kohn's independence from Hosking Partners, and therefore believes that the resolution to appoint him as director is not in the best interests of the company or its shareholders.
The company unanimously recommended shareholders to vote against Kohn's appointment.
With respect to the ousting of Chair Laffin, Flybe urged shareholders to reject the resolution as he has "dedicated himself tirelessly to leading the board through a very difficult period".
The airline said its board believes the removal of Laffin is against the company's best interests and recommended shareholders to vote against it.
Earlier on Friday, Flybe said all of its assets and operations have now been sold to Connect Airways Ltd, although shareholder approval is still needed to complete the full acquisition.
Connect is a joint venture among Stobart Group Ltd, Virgin Atlantic Ltd, and DLP Holdings SARL.
Flybe's two operating subsidiaries, Flybe Ltd and Flybe.com Ltd, were sold for GBP2.8 million, meaning that Flybe is now a non-trading entity and has no subsidiaries or material assets apart from the GBP2.8 million.
The separate sale of Flybe's entire issued share capital, however, still requires shareholder approval. Flybe advised its shareholders to back the deal, which values the company at just 1 pence per share or GBP2.2 million, or they are likely to receive "no value" for their Flybe shares.
If the deal is not approved, Flybe's directors will wind up the company.
Flybe shares closed down 26% at 1.51 pence each on Friday.