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Connect Airways to Provide £20m to Conclude Flybe Takeover

Connect Airways to Provide £20m to Conclude Flybe Takeover

Flybe has advised investors that it expects the takeover of the airline to be completed on 22nd February 2019. The regional carrier signed an acquisition deal with Connect Airways, a consortium led by Virgin Atlantic and Stobart Group, earlier this month, with Connect offering shareholders one pence per share, valuing the carrier at around £2.2 million.

However, Flybe failed to meet the conditions for receiving a promised £20 million bridge loan under the original takeover deal. This followed a decision by credit card companies to clamp down amid fears over the financial security of the airline.

In response, Connect Airways has now provided the first £10 million of the £20 million secured committed credit facility referred to in the initial announcement. It is hoped that the cash will maintain the viability of Flybe until the takeover can be completed.

The transaction is now expected to close next month and will not require shareholder approval.

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NEIL STEEDMAN has been a trade journalist, copywriter, editor and proofreader for 52 years, and News & Features Editor for ‘Irish Travel Trade News’ for the past 42 years.

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