Flybe has turned down a rival offer for its business saying it was ‘too conditional’ and couldn’t be completed in time to stop it going into administration.
The rival deal from Mesa Group with involvement from a former CEO of Stobart Aviation, who is in a legal dispute with Stobart Group, who are also part of the Connect offer currently completing, was for £63-85m in recapitalisation funds. Flybe said it had already used up £15m of the £20m funding provided by Connect. The Connect deal is due to complete tomorrow, 22nd February.
At that point Flybe’s operational business will be sold to Connect. That didn’t require a share holder vote following a decision last year to let the board sell parts of the company as and when needed to secure its future.
The Flybe Group will in effect have no assets, but will be nominally sold to Connect if agreed to at a March shareholder meeting, which is likely to be contentious as many of them think they’ve been short changed out their share values, which in effect are worthless. But as the company said, it was empowered to act if the airline was going to fail, it was, they did, and thats the end of it.