LONDON (Alliance News) - Flybe Group PLC on Monday confirmed it received a tentative proposal from former Stobart Group Ltd boss Andrew Tinkler, who offered a capital injection to the airline if its takeover by Connect Airways Ltd does not proceed.
Flybe said that Tinkler made a "very preliminary, short and highly conditional outline contingency proposal" for a capital injection into the company, which would only take place if the sale of Flybe's operating business to Connect Airways were to be stopped. The proposal wasn't an offer for the entire company, Flybe said.
However, the struggling airline said it "does not consider that the preliminary proposal offers the certainty required to secure the future of Flybe".
"Accordingly, the board emphasizes to shareholders that it continues to regard the arrangements entered into with Connect Airways as being the only viable option available to the company which provides the security that the business needs to continue to trade successfully," Flybe said.
Connect Airways is a joint venture among Stobart, Virgin Atlantic Ltd, and DLP Holdings SARL, which agreed to acquire Flybe for 1 pence per share earlier in January.
Currently, Stobart is engaged in a courtroom battle against Tinkler who had its employment with the group terminated in June for "breach of contract and breach of fiduciary duty" after Stobart accused him to have "jeopardised" the future success of the group.
Tinkler also tried to oust Chairman Ian Ferguson, a move that "totally" countered the company's interests and threatened to destabilise it, Stobart claimed.
Tinkler denies wrongdoing, saying he was removed for no good reason.
In a separate statement on Monday, Flybe said it will convene a general meeting to consider the resolutions to appoint Eric Kohn as a director and remove Simon Laffin from the company's board, after receiving a valid request from its largest shareholder Hosking Partners LLP.
Hosking holds a 19% stake in the airline.
Flybe will call the meeting within 21 days to be held no more than 28 days following the date of the notice.
Late last month, Hosking had called for the meeting, but Flybe said the request was "not valid". Flybe had said the request must be made by a member of the company and invited Hosking to make the request again.
Flybe shares were trading up 10% at 3.53 pence each on Monday. Stobart shares up 0.1% at 151.10p.
