23 Feb 2012 14:00
RUBICON DIVERSIFIED INVESTMENTS PLC
('Rubicon' or the 'Company')
Potential Reverse Transaction and Update on Business Activities
The Directors of Rubicon have noted the press article regarding the proposed acquisition of Fly 540.
The Company can confirm that, amongst other potential acquisition opportunities, it is in discussions regarding the potential acquisition of Fly 540, an aviation business operating in Africa ("Potential Transaction"), from Lonrho plc.
The Company notes that the Potential Transaction contemplated would constitute a reverse takeover under the AIM Rules for Companies and will require the publication of an admission document in respect of Rubicon as enlarged by the acquisition of Fly 540 and the consent of Rubicon shareholders in a general meeting.
The Company is not currently in a position to comply with the requirements of AIM Rule 14 insofar as publication of an admission document and convening of a general meeting are concerned. Consequently, the Company has requested that its securities are suspended from trading on AIM until such time as either the Company is able to publish an admission document or the Potential Transaction is no longer in contemplation.
There can be no assurance that the Potential Transaction will be completed. The Company will provide an update in due course.
The Directors are also pleased to provide the following update on developments in the Company's newly adopted aviation strategy of launching a Low Cost Carrier with a focus on Africa.
easyGroup Holdings Ltd ('easyGroup'), began work in December 2011 under the terms of the agreement entered into with Rubicon to assess the feasibility, and plan for the launch, of a low cost, point-to-point, no frills, all jet aircraft business model for Africa. The easyGroup team, led by Sir Stelios Haji-Iannou has worked intensively with Rubicon since commencement of the project on all aspects of airline operations, and preliminary recommendations have been made regarding location of hubs, route networks and frequencies, and other associated matters relating to launching of new service. Rubicon is also holding discussions with various aircraft manufacturers to determine the final choice of aircraft model, availability and financing structures.
The Company envisages that the initial hub will be based in West Africa, where there appears to be high demand for a Low Cost Carrier servicing both domestic and international destinations within Africa.
Robert Burnham, Chairman of Rubicon said: "the combined Rubicon / easyGroup team has been working extremely hard in the past two months and substantial progress has been made in refining the business model and launch programme for the planned low-cost airline in Africa. The work completed to date has validated our views on the attractiveness and potential of this venture. What we are doing is complex, and while we have no doubt about the hard work which lies ahead, we are confident that we are on track to deliver against our strategy".
Enquiries:
Rubicon Diversified Investments Plc Tel: 07776 133 421
Robert Burnham
WH Ireland Tel: 0207 220 1666 James Joyce