Clear
0 Selected+
Filters
Air
Luxury
Regulation
Operators
Agencies
City and finance
Destinations
Skills
Cruise
Technology

Hello! You are viewing your 1 free guest article this week


Join now for free, immediate and unlimited access to our award-winning online content. Find out more...

Join us
Already a member? Log in here

News

22 Mar 2018

BY James Chapple

Share
TRFBLI

Flybe takeover off after Stobart Group scraps bid

Shares in Flybe plummeted on Thursday (March 22) after Stobart Group withdrew its interest in a buyout.

Flybe
Sharelines

Flybe takeover off after Stobart Group scraps bid

Stobart floated a possible bid for Flybe last month but has now confirmed it is not planning to make a formal offer.

 

The two groups have, however, committed to continuing their close working relationship and franchise agreement.

 

Flybe share prices had fallen by nearly 25% by 9am on Thursday morning following the announcement overnight.

 

“Stobart Group and Flybe have been unable to reach an agreement on satisfactory terms,” said Stobart in a statement.

 

“The board of Stobart Group has determined it is not in shareholders’ best interests to increase its latest proposal for Flybe above the level which was rejected by the board of Flybe.

 

“Given this, Stobart Group confirms it does not intend to make an offer for Flybe.

 

“Stobart Group and Flybe enjoy a range of shared interests as well as a growing franchise arrangement between the two groups’ airlines and it is Stobart Group’s intention to continue the collaborative working relationship between both companies.”

 

A Flybe spokesperson added: “The board of Flybe Group Plc notes the announcement by Stobart Group Limited withdrawing its approach regarding a possible offer for Flybe.

 

“The board remains highly confident in the prospects of Flybe and believes the group continues to have an exciting future as an independent company, delivering the sustainable business improvement plan set out in June 2017.

 

“This plan is focused on driving sustainable profit and cash generation and will see the fleet size reduce to an optimum level for the number of identified profitable routes and make the business demand-driven rather than capacity-led.”

 

Stobart, which owns Southend and Carlisle Lake District airports, last month said it was interested in being part of a cash bid for the regional carrier.

 

Exeter-based Flybe has an existing franchise agreement with Stobart, Stobart Air, which operates some Flybe services and also flies as Are Lingus Regional.

 

Flybe issued two profit warnings last year, citing IT issues and maintenance costs, as well as rail competition and weaker winter demand.

Add New Comment
Please sign in to comment.
Show me more
TTG Media Limited.
Place of registration: England and Wales.
Company number 08723341.
Registered address: New Bridge Street House, 30-34 New Bridge Street, London EC4V 6BJ
Scroll To Top