fastjet to cancel share trading, reorganise shares and re-register as a private company

fastjet's directors proposed (24-Jul-2020) plans to cancel share trading in the company, implement a share reorganisation and re-register fastjet as a private company, subject to approval by shareholders at a general meeting on 12-Aug-2020. Details include:

• Cancel the admission of fastjet's ordinary shares to trading on the London Stock Exchange Alternative Investment Market. Solenta Aviation Holdings will continue to provide fastjet with financial support only if fastjet's listing is cancelled;
• Divide each ordinary share in fastjet into one ordinary share of GBP0.0001 nominal value and one deferred share of GBP0.0099 nominal value, enabling the company to lawfully issue new ordinary shares. The nominal value of ordinary shares is currently GBP0.01 and the market value of ordinary shares has been consistently below the nominal value since late 2019. Under English law, the company is unable to issue ordinary shares at an issue price below the nominal value;
• Re-register fastjet as a private company and adopt new articles of association.

fastjet's directors believe it will be "very difficult" for the company to continue trading as a going concern if the resolutions are not passed and without the support of Solenta. In this case there would be "a very high probability" that fastjet would be placed into administration or liquidation. [more - original PR]