28th Jan 2019 08:33
LONDON (Alliance News) - Flybe Group PLC on Monday confirmed a shareholder is trying to oust Chair Simon Laffin amid the company's takeover.
Flybe made the statement in response to a report by Sky News on Saturday that Flybe's largest shareholder Hosking Partners LLP wants to remove Laffin.
Flybe confirmed Hosking has demanded a general meeting to vote on Laffin's removal and also on the appointment of Eric Kohn to the board to investigate Flybe's sales process.
"The board reaffirms it has acted at all times in the interests of its shareholders and all its stakeholders, through an extremely difficult and challenging period," said Flybe.
"The board continues to have full confidence in its Chair Simon Laffin and believes any independent scrutiny of its conduct will support the board's decision-making."
Kohn, Sky News said on Saturday, is an "experienced aviation executive".
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.
Shares in Flybe were 25% higher on Monday morning at 4.25p.
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.
Related Shares:
Flybe Group