The largest shareholder of Flybe has requested an extraordinary general meeting (EGM) next week where they will ask for the dismissal of the chairman of the company.
Hosking Partners owns just under 19 percent of Flybe. They are contesting against the cut-price sale of the struggling airline to a consortium that is led by Virgin Atlantic.
According to Sky News, the aim of the meeting will be to dismiss Simon Laffin, who has been serving as the chairman at Flybe for five years, after the firm agreed to sell up for a discounted 1p per share.
The fund manager is run by Jeremy Hosking. He wants to place Eric Kohn, the experienced aviation executive, as chairman, in Laffin’s place.
Flybe is anticipated to confirm the request for the EGM to the London Stock Exchange as early as Monday morning.
The first action of Kohn would be to lead a probe into the sale process that is conducted by the board that ended in an undercut price.
Last week, Hosking wrote to the directors of Flybe. He accused them of breaching duties to investors and warning that it could seek an injunction to try to block the deal.
It is not clear whether an injunction is an option that is still being pursued by Hosking.
At the current sale price, the shares of Hosking are worth £400,000, however, with the shares of Flybe closing on Friday at 3.4p, its market value is £3.7 million.
The other investors in Connect Airways, the company that was formed to acquire Flybe, include Stobart Group, which tabled a separate bid for the airline early last year, and an investment firm called Cyrus Capital Partners.
Investors have more reason to be annoyed, with Stobart, one of the members of the consortium, having had a bid worth 40p per share that was rejected in 2018.