Flybe poised for GBP 20m takeover by Virgin Atlantic, Stobart Group and Cyrus Capital Partners - report
Flybe Group [LON:FLYB], a UK-based airline, is poised for a GBP 20m (EUR 22.1m) takeover by rival airline Virgin Atlantic, Stobart Groupand Cyrus Capital Partners, according to a Sky News report on Thursday evening, 10 January. The report cited sources close to the deal who said the offer, which will be significantly below Flybe’s 16.38p share price at the close of trading in London on Thursday, 10 January, will be disclosed via a stock exchange announcement on Friday.
Flybe’s market capitalisation stood at GBP 35.4m at the close of trading on Thursday.
The company began a sale process on 14 November with Evercore advising.
The proposed takeover will lead to Virgin Atlantic operating Flybe and Stobart Air’s regional flights, according to the report.
Virgin Atlantic, in which founder Richard Branson owns a stake, is likely to take be new company’s biggest shareholder, the item said. Stobart Group and Cyrus Capital Partners will take smaller shareholdings in the new company, the report added.
The investment bank Rothschild is advising Virgin Atlantic, as previously reported.
The report went on to cite unspecified sources who said there is still an opportunity for a rival bidder to make an offer for Flybe.
Air France KLM [EPA:AF], a Franco-Dutch airline, last year agreed to buy a 31% shareholding in Virgin Atlantic from Branson’s Virgin Group for GBP 220m, the article noted. Delta Air Lines [NYSE:DAL] is to retain its 49% interest in Virgin Atlantic, with Virgin Group planning to keep a 20% shareholding, the item added.
Flybe and Stobart both refused to comment on Thursday evening, the report said. Sky News said it could not contact Virgin Atlantic for comment.
Background:
A Sunday Telegraph report on 25 November 2018 said International Airlines Group [LON:IAG] was in pole position to acquire Flybe.
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