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Lonrho sells Fly540 to Rubicon as basis for new African LCC FastJet

14-Jun-2012 2:36 PM

Lonrho agreed (13-Jun-2012) to dispose of its aviation business, Lonrho Aviation, to Rubicon Diversified Investments for USD85.7 million, consisting of 1150.5 million Rubicon ordinary shares calculated at a notional value of GBP0.048 per Rubicon ordinary share. Lonrho currently holds 9.5 million ordinary shares in Rubicon. It will control 73.7% of Rubicon's enlarged issued share capital. A general meeting of Rubicon's shareholders has been set for 29-Jun-2012 to vote on the transaction. Details of the agreement include:

  • FastJet: Following completion Rubicon will develop FastJet, as a low-cost African airline based on Fly540 – the existing Lonrho Aviation platform – and utilising the Lonrho Aviation route network, under a licensing agreement with easyGroup. Lonrho Aviation has strategic hubs in Kenya, Tanzania, Ghana and Angola. Substantial cash resources held by Rubicon (GBP8.8 million as at 31-Dec-2011) will be available for continued investment in the airline business following completion of the agreement;
  • easyGroup: As part of the transaction, Sir Stelios Haji-Ioannou's easyGroup will own 5% of Rubicon. As part of the agreement between easyGroup and Rubicon, easyGroup will have the right to appoint two directors to the Rubicon board. It is intended that one of the easyGroup appointments will be Ed Winter who would become CEO following completion. Sir Stelios has the right to be personally appointed to the board as the other easyGroup board representative. David Lenigas and Geoffrey White will remain on the board of Rubicon. [more - original PR]