NO INTERRUPTION EXPECTED IN FASTJET OPERATIONS IN #TANZANIA #ZAMBIA #ZIMBABWE #MOZAMBIQUE AND #SOUTHAFRICA
(Posted 28th June 2018)
Following the mandated announcement by Fastjet PLC yesterday about their need to raise additional capital – the company is listed on the London Stock Exchange and subject to stringent disclosure rules – has the share value dramatically declined.
This prompted speculation in sections of the media – not here however – if operations of the airline across the five countries in Africa will be impacted.
Nico Bezuidenhout, the CEO of Fastjet, subsequently earlier today made a public announcement assuring their clients that operations will absolutely continue while management, board and shareholders seek to resolve this issue.
The open question however is, and urgently needs to be answered, what the intent of major shareholder Solenta Aviation – which holds 28 percent – is in this situation after their motives came under scrutiny over the past two days.
Having seconded aircraft to Fastjet and assisted in the purchase of three ATR 72-600 aircraft with a loan earlier in the year, then seen as a very commendable move to support a fundamentally viable airline business, have questions been asked if they are holding out on the capital injection so as to acquire a more substantial percentage of shares and perhaps make a take over bid but Solenta has not responded to such questions at this time.
A public clarification from Solenta would no doubt dispel the tsunami of rumours sweeping across the countries where the airline operates, not a healthy situation by any standards – and the longer Solenta waits before coming clean the more will they be seen as the party behind the scenes responsible for the developments over the past two days.
The share price as of this afternoon stands at 3.20 per share, still higher than a low of 2.75 earlier in the morning but a year ago did shares still trade as high as 23.50. until the uncertainty now blamed on Solenta brought the shares crashing down yesterday.