22 Jun 2015 07:00
fastjet Plc
(fastjet or the Company)
Disposal of Fly540 Ghana
22 June 2015
fastjet is pleased to announce that it has signed an agreement (the Agreement) to dispose of its interest held by the Company and fastjet Air Limited, a wholly owned subsidiary of fastjet (together the Sellers), in airline Fly 540 Ghana Limited (Fly 540 Ghana), the loss-making investment it had previously acquired from Lonrho Aviation in July 2012. This is in line with the Company's previously announced strategy to exit from certain territories operated before the establishment of the fastjet brand in Tanzania and elsewhere.
fastjet CEO Ed Winter commented: "The disposal of Fly540 Ghana is a great step forward in fastjet's restructuring plans for our legacy businesses. Whilst West Africa remains of interest to us as a low-cost market in the future, our current focus is on expanding our footprint in Eastern and Southern Africa. fastjet has retained the right to discuss the introduction of the fastjet brand in West Africa when it considers the economic conditions and infrastructural environment to be more favourable."
Operations in Ghana were suspended in May 2014 and since that time the Company has been exploring opportunities to restructure or dispose of this loss-making business. Upon completion of this agreement (which was unconditional and simultaneous with signing) Fly 540 Ghana was removed from the fastjet Group.
The Sellers held 800,000 ordinary shares of no par value in Fly 540 Ghana, representing its entire issued share capital (the Shares). In the year ended 31 December 2014 Fly 540 Ghana recorded losses before tax of US$11.3 million. On completion of the Agreement, the Sellers transferred the Shares to DWG-G Company Limited (the Purchaser) for a nominal consideration of US$1 in cash. The Sellers gave no representations or warranties in respect of the transfer of the Shares and all liabilities of Fly 540 Ghana transferred with it on completion of the Agreement.
As a result of the sale of the Sellers' interest in Fly 540 Ghana, and the concurrent removal of the Company's control of that entity, Fly 540 Ghana's financial results, assets and liabilities will no longer be consolidated into the fastjet Group's (the Group) financial statements. The Group's financial statements as at 31 December 2014 included net liabilities in Fly 540 Ghana amounting to approximately US$6.9 million. The Group, through its subsidiary fastjet Aviation Limited (a non-operating holding company) has given a guarantee for an overdraft that remains part of Fly 540 Ghana's liabilities, however there is no liability on the part of the Company in respect of the guarantee, nor in respect of any of Fly 540 Ghana's liabilities at any time and therefore this sale of the Company's 100% shareholding in Fly 540 Ghana will not have any cash impact on the Company or the Group.
For more information, contact:
UK media - Citigate Dewe Rogerson | Tel: +44 (0) 20 7638 9571 |
Angharad Couch | |
Toby Moore | |
Nick Hayns | |
South African media - Tribeca Public Relations | Tel: +27 (0) 11 208 5500 |
Cian Mac Eochaidh | |
Kelly Webster | |
For investor enquiries please contact: | |
W.H. Ireland Ltd.- Nominated Adviser and Joint Broker | Tel: +44 (0) 20 7220 1666 |
James Joyce | |
Mark Leonard | |
Liberum Capital Limited - Joint Broker | Tel: +44 (0) 20 3100 2222 |
Clayton Bush | |
Christopher Britton |
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 Angola where operations are currently suspended.
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 2014's Drum Marketing Awards in London.
fastjet Plc is quoted on the London Stock Exchange's AIM Market.
For more information see www.fastjet.com