fastjet has announced that it has signed an agreement to dispose of its interest in Fly540 Ghana Limited the loss-making investment it had previously acquired from Lonrho Aviation in July 2012. This is in line with the Company's previously announced strategy to exit from certain territories operated before the establishment of the fastjet brand in Tanzania and elsewhere.
fastjet CEO Ed Winter commented: "The disposal of Fly540 Ghana is a great step forward in fastjet's restructuring plans for our legacy businesses. Whilst West Africa remains of interest to us as a low-cost market in the future, our current focus is on expanding our footprint in Eastern and Southern Africa. fastjet has retained the right to discuss the introduction of the fastjet brand in West Africa when it considers the economic conditions and infrastructural environment to be more favourable."
Operations in Ghana were suspended in May 2014 and since that time the Company has been exploring opportunities to restructure or dispose of this loss-making business. Upon completion of this agreement (which was unconditional and simultaneous with signing) Fly540 Ghana was removed from the fastjet Group.
The Sellers held 800,000 ordinary shares of no par value in Fly540 Ghana, representing its entire issued share capital Fly540 Ghana recorded losses before tax of US$11.3 million. On completion of the Agreement, the Sellers transferred the Shares to DWG-G Company Limited for a nominal consideration of US$1 in cash. The Sellers gave no representations or warranties in respect of the transfer of the Shares and all liabilities of Fly 540 Ghana transferred with it on completion of the Agreement.