Fastjet PLC Disposal of Fly540 Ghana (7794Q)
June 22 2015 - 2:00AM
UK Regulatory
TIDMFJET
RNS Number : 7794Q
Fastjet PLC
22 June 2015
fastjet Plc
(fastjet or the Company)
Disposal of Fly540 Ghana
22 June 2015
fastjet is pleased to announce that it has signed an agreement
(the Agreement) to dispose of its interest held by the Company and
fastjet Air Limited, a wholly owned subsidiary of fastjet (together
the Sellers), in airline Fly 540 Ghana Limited (Fly 540 Ghana), the
loss-making investment it had previously acquired from Lonrho
Aviation in July 2012. This is in line with the Company's
previously announced strategy to exit from certain territories
operated before the establishment of the fastjet brand in Tanzania
and elsewhere.
fastjet CEO Ed Winter commented: "The disposal of Fly540 Ghana
is a great step forward in fastjet's restructuring plans for our
legacy businesses. Whilst West Africa remains of interest to us as
a low-cost market in the future, our current focus is on expanding
our footprint in Eastern and Southern Africa. fastjet has retained
the right to discuss the introduction of the fastjet brand in West
Africa when it considers the economic conditions and
infrastructural environment to be more favourable."
Operations in Ghana were suspended in May 2014 and since that
time the Company has been exploring opportunities to restructure or
dispose of this loss-making business. Upon completion of this
agreement (which was unconditional and simultaneous with signing)
Fly 540 Ghana was removed from the fastjet Group.
The Sellers held 800,000 ordinary shares of no par value in Fly
540 Ghana, representing its entire issued share capital (the
Shares). In the year ended 31 December 2014 Fly 540 Ghana recorded
losses before tax of US$11.3 million. On completion of the
Agreement, the Sellers transferred the Shares to DWG-G Company
Limited (the Purchaser) for a nominal consideration of US$1 in
cash. The Sellers gave no representations or warranties in respect
of the transfer of the Shares and all liabilities of Fly 540 Ghana
transferred with it on completion of the Agreement.
As a result of the sale of the Sellers' interest in Fly 540
Ghana, and the concurrent removal of the Company's control of that
entity, Fly 540 Ghana's financial results, assets and liabilities
will no longer be consolidated into the fastjet Group's (the Group)
financial statements. The Group's financial statements as at 31
December 2014 included net liabilities in Fly 540 Ghana amounting
to approximately US$6.9 million. The Group, through its subsidiary
fastjet Aviation Limited (a non-operating holding company) has
given a guarantee for an overdraft that remains part of Fly 540
Ghana's liabilities, however there is no liability on the part of
the Company in respect of the guarantee, nor in respect of any of
Fly 540 Ghana's liabilities at any time and therefore this sale of
the Company's 100% shareholding in Fly 540 Ghana will not have any
cash impact on the Company or the Group.
For more information, contact:
UK media - Citigate Dewe Rogerson Tel: +44 (0) 20 7638
9571
Angharad Couch
Toby Moore
Nick Hayns
South African media - Tribeca Tel: +27 (0) 11 208
Public Relations 5500
Cian Mac Eochaidh
Kelly Webster
For investor enquiries please
contact:
W.H. Ireland Ltd.- Nominated Tel: +44 (0) 20 7220
Adviser and Joint Broker 1666
James Joyce
Mark Leonard
Liberum Capital Limited - Tel: +44 (0) 20 3100
Joint Broker 2222
Clayton Bush
Christopher Britton
NOTES TO EDITORS
About fastjet Plc
fastjet Plc is the holding company of the low cost airline
fastjet which commenced flights under the fastjet brand in Tanzania
in November 2012. The airline introduced Airbus A319s into its
fleet. By adhering to international standards of safety, quality,
security and reliability; fastjet has brought a new flying
experience to the African market at unprecedented low prices.
fastjet is implementing the low-cost model across Africa and its
long-term strategy is to become the continent's first low-cost,
pan-African airline. fastjet Plc is also the holding company of
Fly540 Angola where operations are currently suspended.
The results of a recent customer satisfaction survey showed that
100% of customers were likely to recommend fastjet to a friend. In
developing its strong brand and identity, fastjet has won and been
nominated for a number of awards, including winning three Transform
awards for the rebrand and launch of fastjet and the award for
"Brand Strategy of the Year" at 2014's Drum Marketing Awards in
London.
fastjet Plc is quoted on the London Stock Exchange's AIM
Market.
For more information see www.fastjet.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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