(Alliance News) - Stobart Group Ltd on Thursday said funds run by Toscafund Asset Management LLP raised their holding in the aviation and energy company to 18.8% from 11.7%.
On the same day as Toscafund purchased the additional 7.1% holding, former Stobart chief executive Andrew Tinkler sold his entire 4.975% stake and now has no holding, Stobart had said on Tuesday. Additionally on Monday, Invesco Ltd lowered its own Stobart interest to 11.35% from 14.02%.
Stobart shares were up 0.7% to 111.0 pence in London on Thursday at midday, giving the company a market capitalisation of GBP416 million. This makes Tinkler's disposal worth about GBP20 million. The Toscafund purchase was worth GBP30 million and give the London-based portfolio manager's total holding a value of GBP78.2 million.
Stobart is part owner of financially troubled regional airline Flybe and also operates London Southend airport. On Thursday, it said it will boost its investment in Flybe, which staved off collapse earlier this week.
Stobart said it is could invest an extra GBP9 million in Connect Airways, the joint-venture party which owns Flybe. Stobart explained: "The Connect Airways consortium has committed to providing Flybe further short-term funding with Stobart Group contributing up to GBP9 million of capital, with the funds drawn down only if required."
Stobart has a 30% stake in Connect Airways with Virgin Atlantic also holding a 30% and investment adviser Cyrus Capital Partners having a 40% interest.
Tinkler is the former chief executive of Stobart Group but had a major falling out with the company. Tinkler left as CEO in 2017 and was removed by the company as an executive director in June 2018. He appealed but lost in court. Tinkler's dismissal as executive director was prompted by his move to oppose the re-election of Chair Iain Ferguson.
By Tom Waite; thomaslwaite@alliancenews.com
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