A Surrey-based investment firm plans to join forces with Romanian budget airline Blue Air in a reverse takeover deal.
The planned deal will see Blue Air listed on London’s Alternative Investment Market, allowing it to attract cash for expansion.
The investment company, Ridgecrest, known as a cash shell, has entered into a share purchase agreement with the airline, which flies from Heathrow and several UK departure points. The proposed deal will see Ridgecrest change its name to Blue Air Group plc.
Money raised will be used for the acquisition of more aircraft. Bucharest-based Blue Air has 19 Boeing 737 aircraft and operates nearly 100 routes. In April it took delivery of its first 737 Max and began operations from Heathrow last December.
The airline recorded a pre-tax profit for the year to the end of September 2019 of €6.75 million.
The deal must be completed within six months and will see the airline’s majority shareholders, Cristian Rada and his brother, Mihai, receive the bulk of the newly issued shares in Blue Air Group.
Ridgecrest said the proposed deal “is at a preliminary stage”, and documents relating to the AIM listing would be published “before the end of 2021”.