FastJet back from the brink

EasyJet founder Sir Stelios Haji-Ioannou’s African airline venture FastJet secured a lifeline last week after warning it was in danger of going out of business through lack of funds.

Observers say it is now secure until at least the end of the year.

In a sign of renewed investor confidence, shares rose 165.4% to 8.62p after FastJet said it had secured emergency funding of up to £9.3m. The company had warned on Wednesday it had a cash balance of only £2.5m.

The carrier, which operates low-cost flights across a number of African countries, said it is launching a sale of shares to raise £5.4m and its main shareholder, South African airline Solenta Aviation, is putting £2.3m into the group. Another £1.6m will be raised through an open offer of shares.

A FastJet statement said the funds would provide the group with “sufficient working capital for the remainder of 2018”, with half the money allocated to its Zimbabwe and Mozambique operations and to pay off loans.

In another part of the package, Solenta group managing director Mark Hurst is joining the Fastjet board this week.

FastJet first took to the air in November 2012 from its initial operating base in Africa at Dar es Salaam.

www.fastjet.com

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