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It looks like the CEO is making a fundamental change here, he is strategically changing the direction of the company naming it as ‘Franchise House’. He is acknowledging the losses of long term shareholders and realises these losses of hugh and are no longer sustainable. This
could be the start of a turnaround and change of business direction going forward...
Mark Hurst, fastjet Chief Executive Officer, commented:
"The Disposal, if agreed, approved and implemented, would be expected to de-risk the significant uncertainty and cash drain that shareholders have historically suffered and allow the Group to continue operating under a more stablised and simpler business model. This revised strategy allows the Group the opportunity to create a single fastjet brand throughout key markets in Africa, leverage its key intellectual property of its brand and airline management solutions and invest in viable, already-established airlines where it can."
The restructured Group would become a capital light business operating as a franchise house that would earn revenues through the fastjet brand and providing airline management solutions, whilst also continuing to hold its investment in the FedAir business. The Group's strategy is to focus on franchise and providing airline management solutions to additional airlines in Africa that are independently owned, enhancing its overall revenues from these. Additionally, the Group would aim to only own airlines once they were cash generative and profitable, so avoiding the initial costs and significant cash losses through the airline startup phase and from operating in Africa's sometimes uncertain trading environment.
New CEO online only took over a few months ago, he deserves a chance..doesn’t he? Let’s see but you have to say he’s trying for a change!
It’s a commendable strategy from new CEO, if we think about it, the company was return to profitably this year end!
But 2x issues have prevented this Moz - supply and demand issues + Zim - volatile and uncertain market conditions including currency devaluation x15 (don’t think any company can cater for this!)
So what new CEO has done to arrest losses and mitigate future risks:
1) 21st Oct - MoZ Suspended flight operations,
2) 27 Nov - Sale talks $8m + $8.6m current liabilities and future aircraft expenditure transferred to buyer + Option to buy back business in 3-5yrs
3) 26th Nov - Sold it’s share in Tanzanian Fastjet Air. Now into liquidation but no longer relate to the company.
I would say that’s proactive and pretty impressive when considering the CEO has only been in charge for less than 3 months!
Latino
You are obviously serious and I’m lost for words
" New CEO"
He is an ACTING CEO....
" It’s a commendable strategy "
The plane is in a nose dive and feet from hitting the floor....so I guess you could say that it is commendable that the pilot is looking at the proposal to lift the front end ...hummm
" The Group is therefore currently in active discussions with certain of its major shareholders to explore various options including raising equity capital and / or a restructuring of the Company"
.....including raising equity capital AND / or a restructuring of the Company
Are you still telling your lies about placings iknowthis. I exposed you as a liar this afternoon with your claims by showing that they've had no placings since the measly $500k raised last year and now you're prattling on again?
I know it sounds harsh to talk to you this way but you were so wrong with your claims after the RNS and so unwilling to admit it it just has to be said.
On this.....including raising equity capital AND / or a restructuring of the Company.
If they sell on terms of RNS, then they won’t need to raise any cash as they’ve said this will provide sufficient funding till 2021. That’s why ‘and/or’ is used..!
Its got nothing to do with denial and its not "my shareprice." I just turned up earlier after the news to ask a question and you told me porkies about placings when theres been none all year and last years was tiny !!
Just a bit much to see you posting that the co, tell lies after that lot is all.
Might buy a few in the morning though as can see the possible turnaround story so long as the lossmaking division is sold that is.
If this strategy change goes ahead....the revenues will be significantly lower ( and the costs too) ...but...you have to ask yourself.....what exactly is the point at that stage of staying on the LSE AIM market and paying all the costs related to that.?
This "could" end up being delsited from AIM ...and either end up on NEX ..or...listed purely in Johannesburg... as more cost effective for a smaller company
--------------------
pawnsacrifice :
" by showing that they've had no placings since the measly $500k raised last year "
I think you appear to have missed the $10m fund raise in June 2018
https://www.ch-aviation.com/portal/news/68556-fastjet-secures-10mn-in-funding-moves-to-acquire-fedair
Pokerchips, EXACTLY, and that’s the plan all along