Showing posts with label Fastjet. Show all posts
Showing posts with label Fastjet. Show all posts

17 November, 2018

Struggling Fastjet raises $40 million in share deal

There is an uncertain future for African low-cost airline Fastjet as the struggling budget airline tries to secure more funding and investment to secure its operations.

The airline has been running short of cash for months and recently announced a new share issue and refinancing deal that would raise cash and equity by at least $40 million. On Friday, November 16th the airline confirmed it had completed the first of three phases of those refinancing initiatives. It has raised USD11.5 million through the placement of 898.4 million shares at 1p each, a 39% to its closing price of 1.65p per share on Friday.

The airline is also arranging with its largest shareholder, Solenta Aviation to take 316.7 million shares to take a greater stake in the company which will raise $4.1 million.  More shares will also be issued to allow the company to acquire four Embraer 145 aircraft for further route development.  

A Fastjet spokesperson said: "The equity refinancing will reduce Fastjet's debt significantly and it is expected it will result in the group being fully funded through 2019. The company, with a substantially stronger balance sheet and recently improved results from operations, will be better positioned for growth going forward."