Flybe Directors Give Ultimatum Over Takeover Bid

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Flybe has warned its shareholders that if they do not approve its £2.2 million sale to a consortium that includes Stobart Group and Virgin Atlantic, the company will be wound up and they will receive no value for their shares.

The shareholders have been requested to vote for selling the parent company of the airline in a deal which would give them 1p per share.

In a statement that was released on Thursday evening, the company stated: “If the Scheme is not approved, the Flybe Directors intend to take steps to wind-up the company and shareholders are likely to receive no value for their shares in Flybe.”

It added: “Accordingly, the Flybe directors believe that the terms of the acquisition remain in the best interests of Flybe shareholders as a whole and unanimously recommend that Flybe shareholders vote in favour of the resolutions to be proposed at the court meeting and the general meeting.”

It continued: “Although the price per share offered by Connect Airways was disappointingly low, its proposal was ultimately the only proposal capable of immediate execution to enable Flybe and the Flybe subsidiaries to continue to trade as going concerns.”

Earlier this week, it emerged that the airline will also ask its shareholders to vote on whether or not to remove Simon Laffin, the chairman of the company who has served on the board for five years, as the struggling airline attempts to keep the cut-price takeover on course amidst the intensifying pressure from its investors.

Hosking Partners, one of its major shareholders, urged Flybe to call the meeting as it considers legal action over the low-ball £2.2 million takeover of the airline.

Hosking wants to appoint Eric Kohn, a veteran of the aviation industry, as the new chairman of the company.

The general meeting is planned to be held on the 4th of March.