24 Jul 2020 07:21
fastjet Plc
("fastjet", the "Company" or the "Group")
Update on Historic Related Party Transactions
24 July 2020
On 9 July 2020, fastjet, the low-cost African airline, provided details of historical contracts it entered into, via its subsidiaries fastjet Zimbabwe, FedAir and fastjet Mozambique with SAHL, Solenta Aviation and Solenta Mozambique (the "Contracts").
SAHL is a Maltese registered holding company of several airline and maintenance investments and aviation focused businesses throughout Africa. Solenta Aviation and Solenta Mozambique are both subsidiaries of SAHL and are considered related parties to the Company by virtue of being subsidiaries of SAHL, which is a Substantial Shareholder of the Company as defined in the AIM Rules.
The Contracts outlined in the announcement on 9 July 2020 (the "Contracts Announcement") have been identified as related party transactions under Rule 13 of the AIM Rules, however, were not identified as such at the time. Liberum Capital Limited ("Liberum") was not consulted at the time the Contracts were entered into as required by AIM Rule 13.
The Directors of the Company, excluding Mark Hurst (Group Interim Chief Executive Officer), who is considered a related party to SAHL, consider that, having consulted with the Company's Nominated Adviser, the terms of the following Contracts are fair and reasonable insofar as its Shareholders are concerned:
· Operational CMI Services Agreement
· Charter Services
The Directors of the Company, excluding Mark Hurst (Group Interim Chief Executive Officer), consider that the terms of the following Contracts are fair and reasonable insofar as its Shareholders are concerned, however, Liberum has not been able to advise that they are fair and reasonable insofar as the shareholders are concerned:
· Aircraft Maintenance Services Agreement
· Amendment to the Operational CMI Services Agreement
· Supply of Services Agreement
· New Supply of Services Agreement
· Base Maintenance FJF
· Base Maintenance BBD
Capitalised terms used but not defined in this announcement have the same meanings as set out in the Contracts Announcement.
fastjet plc | Tel: +27 (0) 10 070 5151 |
Mark Hurst, Group Interim Chief Executive Officer Kris Jaganah, Group Chief Financial Officer | |
Liberum Capital Limited Nominated Adviser and Broker | Tel: +44 (0) 20 3100 2222 |
Andrew Godber Clayton Bush James Greenwood William Hall | |
Citigate Dewe Rogerson Financial PR | Tel: +44 (0) 20 7638 9571 |
Angharad Couch Toby Moore Nick Hayns |
NOTES TO EDITORS
About fastjet
Fastjet is a multi-award-winning African value airline that began flight operations in 2012. Its awards include Leading African Low-Cost Carrier World Travel Awards 2016, 2017, 2018 and 2019, and Skytrax World Airline Awards Best Low-Cost Airline in Africa 2017.
Today, fastjet connects the three major cities in Zimbabwe by flying between Harare and Victoria Falls and Harare and Bulawayo. Internationally the airline offers flights from Harare and Bulawayo to Johannesburg in South Africa.
In October 2018, fastjet acquired an interest in FedAir, which provides unscheduled shuttle and charter services to the game lodges in the Southern Africa region.
Since commencing operations fastjet has flown over 3.5 million passengers and has established itself as a punctual, reliable, and affordable airline, with value-added services inclusive of free baggage allowance(s), airport lounge access, dedicated check-in and more according to the new fare attributes introduced across their network.