Sign In
11 Jan 2019 08:01
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION
FOR IMMEDIATE RELEASE
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014
11 January 2019
Stobart Group Limited
(the "Group" or the "Company")
Subscription for Shares
Stobart Group Limited, the Aviation, Energy and Rail & Civils business is pleased to announce the subscription of 16,492,884 ordinary shares of 10 pence each in the Company (the "Ordinary Shares") by DLP Holdings S.à.r.l. ("DLP Holdings"), a Luxembourg company wholly-owned by funds managed by Cyrus Capital Partners LP. ("Cyrus Capital") at a price of 150p per share to raise approximately £24.7 million (the "Subscription"). This represents 4.65% of the entire existing issued share capital of Stobart Group and the Subscription Shares will be issued under the Company's existing authorities. The Subscription is not being underwritten.
The Subscription follows the Group's announcements today of the formation a joint venture private limited company, Connect Airways Limited ("Connect Airways"), the shareholders of which are Stobart Aviation Limited ("Stobart Aviation"), a wholly owned subsidiary of Stobart Group Limited, Virgin Travel Group Limited ("Virgin Travel Group"), the holding company of Virgin Atlantic Airways Limited, and DLP Holdings, and also Connect Airway's recommended cash offer to acquire the entire issued and to be issued share capital of Flybe Group PLC.
Warwick Brady, CEO of Stobart Group said:
"This is a significant step in terms of delivering our strategy and I am pleased to also welcome a supportive, long-term shareholder to our register.
"Cyrus Capital is a well-capitalised strategic partner with significant aviation transaction experience and is fully aligned with our ambitious growth strategy. The combination of Flybe with our franchise airline, Stobart Air, will provide us with an opportunity to increase passenger numbers at London Southend Airport. We intend to extend and expand London Southend Airport to cater for the accelerated growth that we are targeting, and Cyrus Capital is aligned to this aim."
The Subscription Shares, when issued, will be fully paid and will rank pari passu in all respects with the existing ordinary shares of 10 pence each in the capital of the Company, including the right to receive all dividends and other distributions declared, made or paid after the date of issue.
Application will be made for the Subscription Shares to be admitted to the premium segment of the Official List of the Financial Conduct Authority and to trading on the main market for listed securities of the London Stock Exchange (together, "Admission").
Admission is expected to take place on or before 8.00 a.m. on 18 January 2019 (or such later date as may be agreed between the Company and Cyrus Capital). The Subscription is conditional upon, amongst other things, Admission becoming effective.
The person responsible for arranging the release of this announcement on behalf of Stobart Group is Louise Brace, Company Secretary.
Stobart Group Limited C/o Newgate Communications
Charlie Geller, Head of Group Communications
Newgate Communications +44 203 757 6880
Robin Tozer stobart@newgatecomms.com
Ian Silvera
Fiona Norman
Follow the stocks
