From
www.excelairways.com:
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February 20, 2004
Excel Airways announces major new investment
EAG announces that Flugfelagid Atlanta hf d/b/a Air Atlanta Icelandic ("Air Atlanta") has made a £29.9 million offer to Libra Holidays Group Ltd ("Libra") for the purchase of its holding of 38.9 million shares in EAG, representing 40.5% of the issued share capital. Subject to CAA approval, ratification by the Board of Directors of Air Atlanta and the approval of the shareholders of Libra, completion is expected by 15 March 2004.
Libra, which has indebtedness to EAG`s subsidiary, Excel Aviation of £15.78 million, agrees to repay in full all amounts outstanding from the proceeds of the share sale. Additionally, Libra has entered into a long term agreement with Excel Aviation for the supply of future seat capacity.
Following the purchase by Air Atlanta of EAG shares, Libra will hold 37,439,566 shares representing 39% of the issued share capital. The Panel on Takeovers and Mergers, having received notice from shareholders holding over 50 per cent of the issued share capital of EAG (including Libra in respect of the balance of its remaining shares) that they would not accept an offer from Air Atlanta on the above terms, has granted a dispensation from the mandatory bid requirements of the Takeover Code in respect of the aforementioned purchase of shares by Air Atlanta. The management team will retain their shares representing 18.2%.
Air Atlanta is the largest wet lease charter airline in the world and is the major supplier of Boeing aircraft leased by EAG`s subsidiary Excel Airways for summer only use. During summer 2004, nine aircraft will be leased from Air Atlanta and as part of the share sale arrangement, a five year commercial agreement will be signed for the supply of summer only aircraft to Excel Airways. Air Atlanta`s turnover in 2003 amounted to Euros 240 million* and its assets at the beginning of 2004 were Euros 80 million*.
As well as providing Excel with a long term source of flexible seasonal capacity, Air Atlanta with their skill and experience in operating in the worldwide wet lease market will be able to assist Excel in exporting its successful business model to other parts of the world. The opportunities for jointly accessing potential economies of scale will be vigorously pursued by both airlines as a result of this partnership.
Phil Wyatt, Chief Executive, commenting on the transaction said:
"With Air Atlanta now becoming a significant shareholder in EAG, we are able to secure a very important trade partner who has provided substantial funds to Libra to facilitate a full repayment of its indebtedness to EAG. At the same time, Libra, who is an important customer of Excel Aviation, will have realised a significant gain on their investment."
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