21st Jan 2019 08:59
LONDON (Alliance News) - Flybe Group PLC's largest shareholder could attempt to block the sale of the company, Sky News reported on Sunday.
Sky reported that in a letter to Flybe's directors, Hosking Partners LLC warned it may try to get an injunction against the deal.
Equity investor and 19% shareholder in Flybe, Hosking Partners LLP, has "instructed lawyers to explore its options in relation to the company's proposed sale" according to Sky.
Hosking Partners is also reported to have claimed Flybe's directors "allowed a false market in the company's shares to develop by failing to update the city on its financial position in a timely fashion".
According to Sky, the letter was also copied to city watchdogs including the UK's Takeover Panel and the Financial Conduct Authority.
"Hosking Partners is said to have raised doubts as to whether the GBP2.2 million offer reflected the intrinsic value of Flybe, and alleged that the handling of its proposed sale had blocked a rival offer from emerging at a higher price," Sky reported.
https://news.sky.com/story/top-flybe-shareholder-threatens-legal-challenge-over-2m-bid-11611470
Flybe will sell its main trading company and online business for GBP2.8 million to Connect Airways Ltd, a joint venture between Stobart Group Ltd, Virgin Atlantic Ltd, and DLP Holdings SARL. In addition, the companies agreed a bridge loan of up to GBP20 million to fund Flybe Ltd.
Before the deal was announced, Flybe's shares closed at 16.38p each which gave it a GBP35.5 million market capitalisation.
Related Shares:
Flybe Group