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Fastjet to sell Zimbabwe unit

by Staff reporter
27 Nov 2019 at 18:36hrs | Views
Low cost airline Fastjet says it has tabled capital raising and restructuring proposals to its major shareholders involving the disposal of its Zimbabwe unit.

The Airline said further funding will be required by the end of February 2020 to enable the Group to continue operating in its current form and the disposal of Fastjet Zimbabwe is being considered.

"The Disposal would be made in receipt of a consideration of approximately US$8 million from a consortium that would be led and underwritten by Solenta Aviation Holdings Limited, and additionally by other local investors in Zimbabwe, the company said in a statement Wednesday.

Solenta Aviation Holdings Limited is a 60 percent shareholder in Fastjet Plc today. Mark Hurst, fastjet Chief Executive Officer, commented:

"The Disposal, if agreed, approved and implemented, would be expected to de-risk the significant uncertainty and cash drain that shareholders have historically suffered and allow the Group to continue operating under a more stablised and simpler business model.

"This revised strategy allows the Group the opportunity to create a single fastjet brand throughout key markets in Africa, leverage its key intellectual property of its brand and airline management solutions and invest in viable, already-established airlines where it can."

The company however said the Group would be granted an option to buy back its shareholding in Fastjet Zimbabwe on the same divestment economics to which it would be sold, 3 to 5 years after the effective date of the sale.

Source - the herald