fastjet PLC heads for privatisation following delisting

fastjet PLC is set to become privately held following its delisting from the London Stock Exchange (LSE) AIM platform on Monday, August 24. The move will allow the lossmaking UK-based firm, which holds stakes in Fastjet Zimbabwe (FN, Harare Int’l) as well as Federal Air (7V, Durban Virginia) in South Africa, to make significant savings given the strenuous costly oversight requirements of maintaining a listing on AIM. It was also a key requirement laid down by main shareholder Solenta Aviation Group for its continued participation in future recapitalisation efforts. Solenta has already indicated its willingness to underwrite a capital raise following the delisting and registration of fastjet PLC as a private company which is expected to be completed by the end of September 2020. Solenta has confirmed that it would be prepared to underwrite a capital raise of at least USD1.5 million if called on by the Board, but on terms that still need to be negotiated and agreed. Trading in fastjet PLC stock will continue albeit through the Asset Match platform. In one of its final AIM disclosures, issued on August 20, fastjet PLC gave an update regarding an objection lodged by FedAir shareholder Carl Trieloff wherein he claimed the sale of FedAir shares to Parrot Aviation Proprietary Limited, a fastjet PLC vehicle, had been invalidated owing to a technical breach. Aside from Trieloff, who owns 18.85% of FedAir, the holders of FedAir’s remaining 81.15% confirmed their intention to offer back their shares to Parrot through a new share sale agreement in order to resolve the technical breach.