fastjet is raising at least $48m through a proposed placing and an agreement with Solenta Aviation, a specialist African commercial aviation group based in Johannesburg.
fastjet has entered in to a conditional agreement with Solenta Aviation for the provision and operation of three wet-leased aircraft and the supply of other services over the next five years.
The company has also announced a proposed placing to raise gross proceeds of not less than US$28.8 million through the issue of new ordinary shares at 16.3p apiece.
Under the agreement, Solenta will become a c. 28% shareholder in fastjet.
fastjet has agreed to issue Solenta c. 95.6 million new ordinary shares to acquire a Solenta group SPV that will own the right to enter into the three ordinary course wet-leases and to receive discounts to the value of US$19.2 million on the future cost of services provided by Solenta.
Interim chairman and chief executive Nico Bezuidenhout said: "Our agreement with Solenta represents a good operational and strategic fit. It provides fastjet with access to fleet and related services which, together with the funds raised through our proposed Placing, will allow us to successfully implement the final stages of our Stabilisation Plan. We have made good progress with the Plan and the near-term priority continues to be to fully stabilise the business and to reach cash flow break even by the fourth quarter of this year. As well as helping us to achieve this objective, the fundraising and Solenta Agreement will also provide the platform from which to flexibly and cost-effectively pursue fastjet's medium to long-term objective of becoming the first truly pan-African low-cost airline."
At 9:54am: (LON:FJET) Fastjet PLC share price was +0.13p at 16.75p