African budget operator Fastjet Group expects to re-register as a private company by mid-September after shareholders overwhelmingly approved a delisting from the stock exchange.
The company will “proceed with the cancellation of trading” of its ordinary shares on the London AIM exchange on 24 August.
Shareholders voted on 12 August to undertake a share re-organisation, reducing the stock’s nominal value, and ultimately delist the company.
Trading in ordinary shares will be transferred to an electronic off-market dealing service organised by financial specialist Asset Match.
Fastjet Group will re-register as a private limited company by 15 September, it says.
The airline, which started flights in 2012, has been struggling with losses and, while it has retreated from markets including Tanzania and Mozambique, it has been facing continuing pressures – including the coronavirus crisis – affecting its remaining services in Zimbabwe and South Africa.
Its major shareholder, Solenta Aviation Holdings, has been providing the company with financial support but had indicated that it would only continue to do so if the AIM listing was cancelled.
Without Solenta’s assistance there is substantial uncertainty about the company’s ability to continue trading beyond 31 August.
Fastjet Group had warned shareholders that, as a result, approving the delisting and the re-registration was “important”. It says shareholders voted 96% in favour of both motions.