12 Nov 2012 07:00
12 November 2012
Lonrho Plc
("Lonrho")
Lonrho is pleased to announce that fastjet Plc ("fastjet" or the "Company"), the AIM listed African airline in which Lonrho owns 67.4%, has announced it has entered into binding subscription agreements to raise $2.4 million (£1.50 million) for the issue of 42,857,144 new ordinary shares in the Company (the "Subscription Shares") at a price of £0.035 per share (the "Subscription Agreements"). Upon completion Lonrho's shareholding in fastjet will reduce to 65.8%.
Fastjet Plc
$2.4 million Placing
fastjet Plc (AIM:FJET) is pleased to announce that it has entered into binding subscription agreements to raise $2.4 million (£1.50 million) for the issue of 42,857,144 new ordinary shares in the Company (the "Subscription Shares") at a price of £0.035 per share (the "Subscription Agreements"). Upon completion The Subscription Shares will represent approximately 2.43% of the enlarged issued share capital of the Company.
David Lenigas, FastJet's Executive Chairman, commented:
"Following the announcement on 5th November 2012 of the completed FastJet branding and the launch of FastJet operations in Tanzania with three A319 aircraft, the Company is now progressing with establishing the second hub location for FastJet in the continuing plan to build the FastJet network into the Low Cost Carrier for all of Africa."
"These additional funds will be deployed in assessing an earlier than expect opportunity open to FastJet to interact with the Southern African market place and progressing with the opening of further operational hubs for the FastJet network across Africa."
ENDS
Enquiries:
Lonrho Plc +44 (0) 20 7016 5105
Geoffrey White
David Armstrong
FTI Consulting +44 (0) 20 7831 3113
Edward Westropp
Georgina Bonham
Jefferies Hoare Govett +44 (0) 20 7029 8000
Sara Hale
Harry Nicholas
Simon Brown
NOTES TO EDITORS
About fastjet Plc
fastjet Plc is the holding company for African airline Fly540, which operates from four bases in Kenya, Tanzania, Ghana and Angola. Fly540 currently has 10 aircraft serving around 25 domestic and regional destinations, carrying approximately 750,000 passengers per year with a strong emphasis on safety, security and reliability.
Following a consultancy assignment by easyJet founder Sir Stelios Haji-Ioannou's easyGroup focused on determining the feasibility of launching a European-style low-cost carrier in Africa, we are now preparing for the launch of fastjet, Africa's first low-cost carrier, flying a modern fleet of jet aircraft based on the Fly540 platform of licences and routes. First flights under the fastjet brand are expected to take place late November, bringing an entirely new flying experience to the African market.
fastjet Plc is listed on the London Stock Exchange. For more information see www.fastjet.com
Significant African Aviation Market Potential
Africa is a growth aviation market with regional and intercontinental traffic both growing rapidly as a result of the continent's continued economic expansion. With over one billion people, Africa is hampered by poor infrastructure, a lack of roads and railways and long distances between urban populations. The African aviation market is significantly underserved with air travel spending as a percentage of GDP a fraction of that of other emerging markets. With rapid economic growth and, as a result, the growing wealth of African citizens, more and more people will be able to benefit from aviation and fly for the first time. Airbus forecasts total passenger traffic in Africa will grow at an average yearly rate of 5.7% between 2010 and 2030, well above the 4.8 per cent world average growth rate and expects to deliver more than 1,100 new passenger aircraft, 4% of world deliveries, in the next 20 years to satisfy growing demand. Seven of the top 10 fastest growing global economies are now in Africa with consumer spending for the continent forecast to reach US$1.6 trillion by 2020. A recent McKinsey report (June 2010) forecast that 128 million households in Africa are expected to have discretionary income to spend by 2020, while 50% of Africans are expected to live in cities by the same date with urban jobs bringing rising incomes. The McKinsey report concluded that today the rate of return on foreign investment in Africa is higher than in any other developing region and that early entry into African economies provides opportunities to create markets, establish brands, shape.