News

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.

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

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.

More in News

LATA Expo to Debut in London in June

Neil SteedmanFebruary 22, 2020

MSC Cruises Updates Itinerary for MSC Bellissima’s Grand Voyage of Asia

Neil SteedmanFebruary 22, 2020

eTravel is Third Europcar Sign Up Winner

Neil SteedmanFebruary 22, 2020

Qatar Airways Increases Shareholding in IAG to 25.1%

Neil SteedmanFebruary 20, 2020

TC Ireland Reveals Top 10 Long-Haul and Short-Haul Booking Lists

Neil SteedmanFebruary 20, 2020

ITTN’s Top Travel Deals – 20th February 2020

Neil SteedmanFebruary 20, 2020

Coronavirus Update: Passengers Leave the Diamond Princess, ITB China Cancelled

Neil SteedmanFebruary 20, 2020

Summer Family Fun Offers on Haven Family Holidays with Irish Ferries

Neil SteedmanFebruary 20, 2020

Royal Caribbean International Signs Agreement with Antigua and Barbuda

Michael FloodFebruary 20, 2020

Copyright © 2019 Belgrave Group Limited, C4 Nutgrove Office Park, Nutgrove Avenue, Rathfarnham, Dublin 14, Ireland