Eurofly shareholders approve capital injection

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Shareholders in Italian carrier Eurofly, due to be fully integrated with majority shareholder Meridiana, have approved plans to increase Eurofly's capital base.

Under the deal, agreed at a special shareholders' meeting in Milan, Meridiana will transfer assets including aircraft, slots and personnel valued at €52.56 million ($74.9 million) to Eurofly, with Eurofly issuing shares to the same value.

By 3 November 2010, Eurofly will also issue another tranche of shares valued at €40 million to further increase the company's capital.

Clearance to raise this latter sum supplants a decision last month by the shareholders authorising Eurofly to raise €26 million.

The latest shareholders' gathering has also confirmed the new 'Meridiana Fly' brand previously agreed for the merged operation.

Under the new arrangement, Meridiana will become a holding company, containing operating companies such as Meridiana Fly and Olbia Airport.

Integration with Meridiana underpins Eurofly's operations. Earlier this year Eurofly reported poor first-half results and lower predictions for 2009 as a whole.