25 Jul 2013 07:00
fastjet plc
("fastjet" or the "Company")
Issue of Equity
fastjet, Africa's low cost airline, is pleased to announce that owner and licensor of the fastjet brand, easyGroup Holdings Ltd, the private investment vehicle of Sir Stelios Haji-Ioannou, has elected to take newly issued fastjet shares in lieu of all royalty and consultancy payments due to easyGroup up to 31st December 2013.
These payments relate to the Brand Licence agreement announced on 9 May 2012. Following this transaction, 110,334,156 newly issued fastjet shares at 1p will be issued to easyGroup thereby increasing easyGroup's holding in fastjet from under 3% to 5.81%. The remaining terms of the agreement are unaltered.
Application will be made to the London Stock Exchange for a total of 110,334,156 ordinary shares to be admitted to trading on AIM. It is expected that the admission will become effective and that trading in the new Shares will commence on 30 July 2013 ("Admission"). Following Admission, the Company's enlarged issued share capital will comprise of 2,986,472,570 ordinary shares with voting rights. This figure of 2,986,472,570 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules.
Commenting on Sir Stelios' decision, fastjet CEO Ed Winter said:
"We are pleased that Stelios has chosen to increase his holding in the Company, a testament to his confidence in fastjet's success and faith in the low-cost airline model he pioneered.
"fastjet values its relationship with Stelios as a shareholder and brand licensor, and also for the unparalleled low cost airline experience he brings as a consultant to the Company."
Sir Stelios Haji-Ioannou said:
"When we signed the original agreement a year ago, the company had very little other than a vision to start operating a proper low cost airline in Africa. Today, some nine months after the first Airbus 319 flight in Tanzania, fastjet has demonstrated that travellers in Africa will react in exactly the same way as consumers elsewhere, to the availability of low cost fares.
"The roll out of this embryonic operation from Tanzania to the rest of Africa will clearly take both time and more investment. I have faith that the extensive airline experience of Ed Winter and his management team will take the company to the next level.
"There is only one continent on earth where low air fares are not widely available yet. I believe fastjet is now well placed to capture this final frontier. I will be watching their progress with great interest."
-ends-
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Richard Shackleton
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Nick Field
NOTES TO EDITORS
About fastjet plc
fastjet plc is the holding company for African airline Fly540, which operates in Tanzania, Kenya, Ghana and Angola. Flights under the fastjet brand commenced in Tanzania in November 2012. The airline has 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.
In the year to March 2013, fastjet and its subsidiaries carried almost 800,000 passengers, 50% more than a year previously, and 99.2 per cent of its flights left on time with no cancellations. 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