30th Jan 2019 15:40
LONDON (Alliance News) - Flybe Group PLC said Wednesday it has informed largest shareholder Hosking Partners LLP that its request to demand a general meeting to remove Chair Simon Laffin is "not a valid request".
Shares in Flybe were down 8.3% Wednesday afternoon at 3.87 pence each.
Flybe said the request must be made by a member of the company, so it has invited Hosking to make the request again.
The regional airline also said Hosking's resolution to appoint Eric Kohn to the company's board to investigate Flybe's sales process would be "ineffective" as the company's articles of association does not allow such power.
Hosking - which holds a 19% interest in Flybe - wants to hold a general meeting so shareholders can vote on a resolution to replace Laffin with Kohn.
Despite not being allowed to conduct an investigation into its takeover, Flybe said Kohn, if elected, "would enjoy the usual rights to information and freedoms of action enjoyed by all directors".
Flybe added: "The board reaffirms that it has acted at all times in the interests of its shareholders and all its stakeholders through an extremely difficult and challenging period."
Earlier in January, Flybe agreed to a 1 pence per share takeover offer from Connect Airways Ltd, a joint venture among Stobart Group Ltd, Virgin Atlantic Ltd, and DLP Holdings SARL.
This valued Flybe at GBP2.2 million, compared to an approximate market capitalisation at the time 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.
As a result, the acquisition was restructured so Connect would pay GBP2.8 million for Flybe Ltd and Flybe.com Ltd instead of GBP2.2 million for Flybe Group PLC, and the deal would no longer need shareholder approval.
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