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Flybe agrees to be acquired by Stobart, Virgin Atlantic joint venture

Friday, 11th January 2019
Struggling regional carrier Flybe Group said it had agreed to be taken over for £2.2m by a joint venture comprising Stobart Group, Virgin Atlantic and funds managed by Cyrus Capital Partners.

The joint venture, dubbed Connect Airways, had offered 1p for each Flybe share.

Connect Airways had also pledged a £20m bridge loan facility to support Flybe's ongoing working capital and operational requirements.

The joint venture was also planning to provide up to £80m of further funding to invest in the business and support its growth.

Flybe chief executive Christine Ourmieres-Widener said that although the company was now running more efficiently, the industry was nevertheless suffering from high fuel costs and economic uncertainty owing to Brexit.

'We have been affected by all of these factors which have put pressure on short-term financial performance,' she said.

'At the same time, Flybe suffered from a number of legacy issues that are being addressed but are still adversely affecting cashflows.'

"By combining to form a larger, stronger, group, we will be better placed to withstand these pressures.'

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