8 Dec 2014 13:33
fastjet plc
("fastjet" or the "Company")
Disposal of Assets
As previously announced the Company is restructuring the Fly540 Ghana and Angola businesses. As part of that process two ATR aircraft previously operated by those companies are being sold.
Fly 540 Ghana Limited (540 Ghana) and Fly 540 Sociedade De Aviacao Civil SA (540 Angola), as a part of their historic operations, acquired two ATR aircraft (MSNs 949 and 826, together the ATRs). These aircraft were acquired by way of a financing facility provided through the African Export-Import Bank (Afreximbank), guaranteed by fastjet Aviation Limited (a BVI entity).
The ATRs have not been in use since operations ceased in Ghana and Angola earlier this year. The ATRs are surplus to current business needs and have not been generating a profit for the fastjet group, but have been accruing finance lease and other costs in both 540 Ghana and 540 Angola.
Sale agreements were entered into with Elix Assets 7 Limited (Elix), which such agreements are subject to certain conditions. The sale price is at market value to a third party being USD 11.6 million for MSN 949 and USD 9.75 million for MSN 826, payable in cash to Afreximbank as part-consideration for amounts owing under the financing facility.
As a consequence of the sale, fastjet Aviation Limited will be liable as guarantor of the original aircraft acquisition, for the shortfall in sale proceeds which is anticipated to be approximately USD 2.3 million. fastjet Plc, as shareholder of fastjet Aviation limited has no liability under this guarantee. fastjet Plc has previously provided, in its published 2014 interim financial statements, for an estimated USD 2.1 million impairment of these aircraft assets.
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NOTES TO EDITORS
About fastjet plc
fastjet plc is the holding company of the low cost airline fastjet which commenced flights under the fastjet brand in Tanzania in November 2012. The airline introduced Airbus A319s into its fleet. By adhering to international standards of safety, quality, security and reliability; fastjet has brought a new flying experience to the African market at unprecedented low prices. fastjet is implementing the low-cost model across Africa and its long-term strategy is to become the continent's first low-cost, pan-African airline. fastjet plc is also the holding company of Fly540, which operates in Ghana and Angola.
The results of a recent customer satisfaction survey showed that 100% of customers were likely to recommend fastjet to a friend. In developing its strong brand and identity, fastjet has won and been nominated for a number of awards, including winning three Transform awards for the rebrand and launch of fastjet and the award for "Brand Strategy of the Year" at the recent Drum Marketing Awards in London.
fastjet plc is quoted on the London Stock Exchange's AIM market.
For more information see www.fastjet.com