76 PERCENT DROP IN SHARE VALUE FOLLOWING FASTJET’S ANNOUNCEMENT EARLIER TODAY
(Posted 27th June 2018)
Following a report filed here in the early hours of the day (https://atcnews.org/2018/06/27/fastjet-says-they-need-more-funding-or-else/) has the company’s share price taken an unprecedented dive, as the graph shown above amply demonstrates.
No word has come out of Solenta Aviation, a 28 percent shareholder in the company, which has loan funded the recent acquisition of three ATR 72-600 aircraft and also leased Fastjet ERJ145 aircraft for operations in Zimbabwe and should be the most affected from this downturn in share values.
Several shareholders have since morning expressed their sentiments with ATCNews.org over the perceived role Solenta is playing in this development with some suggesting it may be a precursor to a takeover attempt, suggesting Fastjet could ultimately become a brand of Solenta Aviation.
Of course, with share values down in the basement would any takeover offer be based on substantially lower values compared to where Fastjet’s valuation stood last night – but it is understood that the company was legally required to make the announcement they made in the morning under LSE rules and regulations of disclosure.
This development will be closely monitored to see if the share value can recover from the present low, and to what extent, or if the slide will continue – and more important, if Fastjet’s top management can secure the additional funds from shareholders.