Flybe, in financial troubles, is exploring a sale or a merger with a rival airline

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The Board of Flybe Group plc announces today that it is undertaking a comprehensive review of the various strategic options open to it to address the current challenges facing the airline industry and maximise value for shareholders. These options include further capacity and cost-saving measures, initiatives to strengthen the balance sheet and preserve cash resources, as well as a potential sale of Flybe through the commencement of a “formal sale process”.

The Board has appointed Evercore as its financial adviser to assist it with this review.

The Panel on Takeovers and Mergers (the “Takeover Panel”) has agreed that any discussions with third parties may be conducted within the context of a formal sale process. Following this announcement, Flybe is now considered to be in an “offer period“.

Flybe confirms that, at the time of this announcement, it is in discussions with a number of strategic operators about a potential sale of the Company.

Parties with a potential interest in making a proposal should contact Evercore directly.

It is currently expected that any party interested in participating in the formal sale process will, at the appropriate time, enter into a non-disclosure agreement with Flybe on terms satisfactory to the Board of Flybe. The Company then intends to provide such interested parties with certain information on the business, following which interested parties will be invited to submit their proposals to Evercore.

Further announcements regarding timings for the formal sale process will be made as appropriate.

There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.

The Board of Flybe reserves the right to alter or terminate the process at any time and if it does so it will make an announcement as appropriate. The Board of Flybe also reserves the right to reject any approach or terminate discussions with any interested party at any time.

Source: Flybe’s announcement at https://www.flybe.com/investors/ 

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