3i Buying Flybe
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3i Buying Flybe
The Sunday Times - Business
May 22, 2005
3i enters talks to buy a ticket on FlyBE
THE 3i venture-capital group, which previously owned the budget airline Go, is in talks to buy a minority stake in FlyBE in a deal that would value the Birmingham-based low-cost airline at £120m, writes Matthew Goodman.
3i is believed to be one of a small number of private-equity groups negotiating to invest in the airline, which is controlled by the family trust of Jack Walker, the late owner of Blackburn Rovers football club and former steel tycoon.
The other venture capitalists in the running for the deal are thought to include Barclays Private Equity, which also once invested in Go, and Exponent, whose founders worked on Go while they were at 3i.
The Walker family trust wants to sell a stake in the airline to a private-equity group as a precursor to a flotation, which is likely to take place in the next 18 months.
FlyBE operates more than 30 routes to European destinations, including Spain, Portugal and Italy. Jim French, FlyBE’s chief executive, said earlier this year that the airline would make an operating profit of about £10m in the year to March 31.
May 22, 2005
3i enters talks to buy a ticket on FlyBE
THE 3i venture-capital group, which previously owned the budget airline Go, is in talks to buy a minority stake in FlyBE in a deal that would value the Birmingham-based low-cost airline at £120m, writes Matthew Goodman.
3i is believed to be one of a small number of private-equity groups negotiating to invest in the airline, which is controlled by the family trust of Jack Walker, the late owner of Blackburn Rovers football club and former steel tycoon.
The other venture capitalists in the running for the deal are thought to include Barclays Private Equity, which also once invested in Go, and Exponent, whose founders worked on Go while they were at 3i.
The Walker family trust wants to sell a stake in the airline to a private-equity group as a precursor to a flotation, which is likely to take place in the next 18 months.
FlyBE operates more than 30 routes to European destinations, including Spain, Portugal and Italy. Jim French, FlyBE’s chief executive, said earlier this year that the airline would make an operating profit of about £10m in the year to March 31.
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3i have been investors in British airlines for many years with a huge degree of success for themselves. But that (financial) success has come about by selling their shares to bigger airlines. They sold BCAL to BA, they sold Cityflyer to BA, they sold Connectair to Air Europe, they sold Go to EasyJet. if they do buy into Flybe to whom will they eventually sell their shares?
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No-one will buy the airline, but I am sure there will be several takers on the engineering side. Depends what is for sale, if it includes the leasing companies in Jersey then the airline may be a more appealing buy.
Last edited by notac; 25th May 2005 at 09:02.
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An understandable development given that Flybe's CFO ( CS ) is the Same CS that was a founder and FD of Cityflyer and gave 3i around a x40 multiplier on their investment.
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Flybe expected to announce stock market float or sale
Airline Industry Information, May 25 2005
Save a personal copy of this article and quickly find it again with Furl.net. It's free! Save it.
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
UK-based low-cost airline Flybe is expected to signal its intention to either float on the stock exchange or put itself up for sale in the next few weeks.
The airline, which restructured after a difficult post-9/11 period which saw it accumulate massive losses, is also set to announce that it should make a profit for the first time in five years. The airline has made little secret of the fact that it wanted to find a buyer as soon as it hit profit after its restructure.
Flybe's marketing director Mike Rutter said that the airline was expanding at a rapid but sustainable rate after trading figures showed a 35% increase in passenger numbers in the summer of 2004 along with an increase in passenger yield of 10%, reports The Evening Standard.
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COPYRIGHT 2005 M2 Communications Ltd.
COPYRIGHT 2005 Gale Group
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Airline Industry Information, May 25 2005
Save a personal copy of this article and quickly find it again with Furl.net. It's free! Save it.
AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD
UK-based low-cost airline Flybe is expected to signal its intention to either float on the stock exchange or put itself up for sale in the next few weeks.
The airline, which restructured after a difficult post-9/11 period which saw it accumulate massive losses, is also set to announce that it should make a profit for the first time in five years. The airline has made little secret of the fact that it wanted to find a buyer as soon as it hit profit after its restructure.
Flybe's marketing director Mike Rutter said that the airline was expanding at a rapid but sustainable rate after trading figures showed a 35% increase in passenger numbers in the summer of 2004 along with an increase in passenger yield of 10%, reports The Evening Standard.
Continue article
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((Comments on this story may be sent to [email protected]))
COPYRIGHT 2005 M2 Communications Ltd.
COPYRIGHT 2005 Gale Group
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