UK regional operator Flybe’s flights are continuing as normal following Connect Airways’ acquisition of the carrier on 21 February.
Former parent Flybe Group states that its trading entities, including the airline and its digital arm, have been sold to Connect “in accordance” with the terms of the share purchase agreement unveiled in mid-January.
“Flybe flights continue to operate as normal,” the group states.
As a result of the £2.8 million sale Flybe Group has been left as an empty company. It says it has “limited cash” as a result of the transaction, but no other material assets.
The cash will cover the residual and run-down costs of Flybe Group.
“It is not anticipated that, after meeting these costs, there would be any remaining funds available for distribution to shareholders,” the company says.
Shareholders are set to vote on a scheme by which Connect Airways will make a payment – amounting to just £0.01 per share – to acquire the entire share capital of the empty Flybe Group.
Flybe Group’s directors have “strongly” advised shareholders to vote in favour of this scheme at a meeting on 4 March, warning that they will otherwise probably receive “no value” for their shares in the company.
If the scheme is approved a process will begin to cancel and delist Flybe Group shares from the stock exchange around 11 March. Failure by shareholders to approve the scheme will result in Flybe Group’s being wound up by its directors.