Tuesday 26 March 2019

Flybe shares soar on fresh offer

Uncertain flight path: Flybe has said that the proposal was 'highly conditional'
Uncertain flight path: Flybe has said that the proposal was 'highly conditional'

Noor Zainab Hussain

Shares in Flybe sky-rocketed after it said it had received an alternative financing proposal from a new consortium, challenging a Richard Branson-backed group made up of Virgin Atlantic, Stobart Group and Cyrus Capital that had agreed to buy the British regional airliner.

Flybe said the new preliminary financing proposal was from Bateleur Capital and Mesa Air Group with support from Stobart Group's former boss Andrew Tinkler. Flybe said that the proposal was "highly conditional" and it does not believe it could be workable in the time-frame required. But the stock more than doubled to 2.52 pence a share in the wake of the news.

The optional financing proposal, which includes other undisclosed institutional shareholders, could look to inject cash into Flybe and replace current funding, according to a statement.

Reuters

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