In a move that could be termed as “playing hardball”, FlyBe has come out with a warning: Either approve the sale of the airline to Connect Airways, or face the airline being wound down with zero return.
And there are some choice lines in it. Such as the one below
Accordingly, following completion of the Subsidiary Sale, 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. 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.
Currently, Flybe shareholders are being offered 1p per share on their offering. As stated in the document:
THE FLYBE DIRECTORS STRONGLY ADVISE THE FLYBE SHAREHOLDERS TO VOTE OR PROCURE VOTES IN FAVOUR OF THE SCHEME AT THE MEETINGS IN ORDER TO RECEIVE THE CONSIDERATION OF 1 PENCE PER SHARE.
FlyBe (based out of Exeter) has a wide UK presence, operating regional services within the United Kingdom, as well as services to Europe.
The shakedown continues
Since the 2nd half of 2018, there has been a shakedown of airlines in Europe, with Primera, Cobolt and Germania going to the wall. Norwegian is clinging on whist FlyBe is trying to find its own way out, with the sale of it to Connect Airways (the Virgin Atlantic/Stobart Air/Cyprus Capital Partners consortium).
With a startling threat of “Sell at 1 pence a share or we shutter the business and you get nothing” – it’s not an ideal position for anyone to be in.
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