Lonrho PLC Re Fastjet Plc $2.4 million Placing (8314Q)
November 12 2012 - 2:01AM
UK Regulatory
TIDMLONR TIDMFJET
RNS Number : 8314Q
Lonrho PLC
12 November 2012
12 November 2012
Lonrho Plc
("Lonrho")
Lonrho is pleased to announce that fastjet Plc ("fastjet" or the
"Company"), the AIM listed African airline in which Lonrho owns
67.4%, has announced it has entered into binding subscription
agreements to raise $2.4 million (GBP1.50 million) for the issue of
42,857,144 new ordinary shares in the Company (the "Subscription
Shares") at a price of GBP0.035 per share (the "Subscription
Agreements"). Upon completion Lonrho's shareholding in fastjet will
reduce to 65.8%.
Fastjet Plc
$2.4 million Placing
fastjet Plc (AIM:FJET) is pleased to announce that it has
entered into binding subscription agreements to raise $2.4 million
(GBP1.50 million) for the issue of 42,857,144 new ordinary shares
in the Company (the "Subscription Shares") at a price of GBP0.035
per share (the "Subscription Agreements"). Upon completion The
Subscription Shares will represent approximately 2.43% of the
enlarged issued share capital of the Company.
David Lenigas, FastJet's Executive Chairman, commented:
"Following the announcement on 5(th) November 2012 of the
completed FastJet branding and the launch of FastJet operations in
Tanzania with three A319 aircraft, the Company is now progressing
with establishing the second hub location for FastJet in the
continuing plan to build the FastJet network into the Low Cost
Carrier for all of Africa."
"These additional funds will be deployed in assessing an earlier
than expect opportunity open to FastJet to interact with the
Southern African market place and progressing with the opening of
further operational hubs for the FastJet network across
Africa."
ENDS
Enquiries:
Lonrho Plc +44 (0) 20 7016 5105
Geoffrey White
David Armstrong
FTI Consulting +44 (0) 20 7831 3113
Edward Westropp
Georgina Bonham
Jefferies Hoare Govett +44 (0) 20 7029 8000
Sara Hale
Harry Nicholas
Simon Brown
NOTES TO EDITORS
About fastjet Plc
fastjet Plc is the holding company for African airline Fly540,
which operates from four bases in Kenya, Tanzania, Ghana and
Angola. Fly540 currently has 10 aircraft serving around 25 domestic
and regional destinations, carrying approximately 750,000
passengers per year with a strong emphasis on safety, security and
reliability.
Following a consultancy assignment by easyJet founder Sir
Stelios Haji-Ioannou's easyGroup focused on determining the
feasibility of launching a European-style low-cost carrier in
Africa, we are now preparing for the launch of fastjet, Africa's
first low-cost carrier, flying a modern fleet of jet aircraft based
on the Fly540 platform of licences and routes. First flights under
the fastjet brand are expected to take place late November,
bringing an entirely new flying experience to the African
market.
fastjet Plc is listed on the London Stock Exchange. For more
information see www.fastjet.com
Significant African Aviation Market Potential
Africa is a growth aviation market with regional and
intercontinental traffic both growing rapidly as a result of the
continent's continued economic expansion. With over one billion
people, Africa is hampered by poor infrastructure, a lack of roads
and railways and long distances between urban populations. The
African aviation market is significantly underserved with air
travel spending as a percentage of GDP a fraction of that of other
emerging markets. With rapid economic growth and, as a result, the
growing wealth of African citizens, more and more people will be
able to benefit from aviation and fly for the first time. Airbus
forecasts total passenger traffic in Africa will grow at an average
yearly rate of 5.7% between 2010 and 2030, well above the 4.8 per
cent world average growth rate and expects to deliver more than
1,100 new passenger aircraft, 4% of world deliveries, in the next
20 years to satisfy growing demand. Seven of the top 10 fastest
growing global economies are now in Africa with consumer spending
for the continent forecast to reach US$1.6 trillion by 2020. A
recent McKinsey report (June 2010) forecast that 128 million
households in Africa are expected to have discretionary income to
spend by 2020, while 50% of Africans are expected to live in cities
by the same date with urban jobs bringing rising incomes. The
McKinsey report concluded that today the rate of return on foreign
investment in Africa is higher than in any other developing region
and that early entry into African economies provides opportunities
to create markets, establish brands, shape.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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