LONDON (Alliance News) - Airline acquisition partner DLP Holdings SARL has subscribed for GBP25 million worth of shares in Stobart Group Ltd, the UK infrastructure operator said Friday.
Earlier Friday, Stobart announced that it, alongside DLP and Virgin Atlantic Ltd, would be forming a joint venture called Connect Air Ltd to buy struggling budget airline Flybe Group PLC for GBP2.2 million. Connect Air also will buy Stobart's airline and aircraft leasing business Stobart Air for GBP40 million.
DLP is owned by funders managed by Cyrus Capital Partners LP. It is subscribing to 16.5 million shares in Stobart at a price of 150 pence each, 4.7% of Stobart's entire share capital.
Stobart Chief Executive Warwick Brady said: "This is a significant step in terms of delivering our strategy, and I am pleased to also welcome a supportive, long-term shareholder to our register.
"Cyrus Capital is a well-capitalised strategic partner with significant aviation transaction experience and is fully aligned with our ambitious growth strategy," he continued.
"The combination of Flybe with our franchise airline, Stobart Air, will provide us with an opportunity to increase passenger numbers at London Southend Airport. We intend to extend and expand London Southend Airport to cater for the accelerated growth that we are targeting, and Cyrus Capital is aligned to this aim."
Stobart shares were 9.3% higher early Friday at 164.00 pence each, while Flybe crashed 88% to 1.90p, reflecting the agreed purchase price of 1.00p per share.
