Fastjet PLC Disposal of Assets (1289Z)
December 08 2014 - 7:33AM
UK Regulatory
TIDMFJET
RNS Number : 1289Z
Fastjet PLC
08 December 2014
fastjet plc
("fastjet" or the "Company")
Disposal of Assets
As previously announced the Company is restructuring the Fly540
Ghana and Angola businesses. As part of that process two ATR
aircraft previously operated by those companies are being sold.
Fly 540 Ghana Limited (540 Ghana) and Fly 540 Sociedade De
Aviacao Civil SA (540 Angola), as a part of their historic
operations, acquired two ATR aircraft (MSNs 949 and 826, together
the ATRs). These aircraft were acquired by way of a financing
facility provided through the African Export-Import Bank
(Afreximbank), guaranteed by fastjet Aviation Limited (a BVI
entity).
The ATRs have not been in use since operations ceased in Ghana
and Angola earlier this year. The ATRs are surplus to current
business needs and have not been generating a profit for the
fastjet group, but have been accruing finance lease and other costs
in both 540 Ghana and 540 Angola.
Sale agreements were entered into with Elix Assets 7 Limited
(Elix), which such agreements are subject to certain conditions.
The sale price is at market value to a third party being USD 11.6
million for MSN 949 and USD 9.75 million for MSN 826, payable in
cash to Afreximbank as part-consideration for amounts owing under
the financing facility.
As a consequence of the sale, fastjet Aviation Limited will be
liable as guarantor of the original aircraft acquisition, for the
shortfall in sale proceeds which is anticipated to be approximately
USD 2.3 million. fastjet Plc, as shareholder of fastjet Aviation
limited has no liability under this guarantee. fastjet Plc has
previously provided, in its published 2014 interim financial
statements, for an estimated USD 2.1 million impairment of these
aircraft assets.
UK media - Citigate Dewe Rogerson Tel: +44 (0) 20 7638 9571
Angharad Couch
Eleni Menikou
Nick Hayns
South African media - Tribeca Public Relations Tel: +27 (0) 11 208 5500
Cian Mac Eochaidh
Kelly Webster
For investor enquiries please contact:
W.H. Ireland Ltd. Tel: +44 (0) 20 7220 1666
James Joyce
NOTES TO EDITORS
About fastjet plc
fastjet plc is the holding company of the low cost airline
fastjet which commenced flights under the fastjet brand in Tanzania
in November 2012. The airline introduced Airbus A319s into its
fleet. By adhering to international standards of safety, quality,
security and reliability; fastjet has brought a new flying
experience to the African market at unprecedented low prices.
fastjet is implementing the low-cost model across Africa and its
long-term strategy is to become the continent's first low-cost,
pan-African airline. fastjet plc is also the holding company of
Fly540, which operates in Ghana and Angola.
The results of a recent customer satisfaction survey showed that
100% of customers were likely to recommend fastjet to a friend. In
developing its strong brand and identity, fastjet has won and been
nominated for a number of awards, including winning three Transform
awards for the rebrand and launch of fastjet and the award for
"Brand Strategy of the Year" at the recent Drum Marketing Awards in
London.
fastjet plc is quoted on the London Stock Exchange's AIM
market.
For more information see www.fastjet.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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