Stobart Group Limited Subscription for Shares (8540M)
January 11 2019 - 3:01AM
UK Regulatory
TIDMSTOB
RNS Number : 8540M
Stobart Group Limited
11 January 2019
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN
PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM ANY JURISDICTION
WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR
REGULATIONS OF SUCH JURISDICTION
FOR IMMEDIATE RELEASE
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014
11 January 2019
Stobart Group Limited
(the "Group" or the "Company")
Subscription for Shares
Stobart Group Limited, the Aviation, Energy and Rail &
Civils business is pleased to announce the subscription of
16,492,884 ordinary shares of 10 pence each in the Company (the
"Ordinary Shares") by DLP Holdings S.à.r.l. ("DLP Holdings"), a
Luxembourg company wholly-owned by funds managed by Cyrus Capital
Partners LP. ("Cyrus Capital") at a price of 150p per share to
raise approximately GBP24.7 million (the "Subscription"). This
represents 4.65% of the entire existing issued share capital of
Stobart Group and the Subscription Shares will be issued under the
Company's existing authorities. The Subscription is not being
underwritten.
The Subscription follows the Group's announcements today of the
formation a joint venture private limited company, Connect Airways
Limited ("Connect Airways"), the shareholders of which are Stobart
Aviation Limited ("Stobart Aviation"), a wholly owned subsidiary of
Stobart Group Limited, Virgin Travel Group Limited ("Virgin Travel
Group"), the holding company of Virgin Atlantic Airways Limited,
and DLP Holdings, and also Connect Airway's recommended cash offer
to acquire the entire issued and to be issued share capital of
Flybe Group PLC.
Warwick Brady, CEO of Stobart Group said:
"This is a significant step in terms of delivering our strategy
and I am pleased to also welcome a supportive, long-term
shareholder to our register.
"Cyrus Capital is a well-capitalised strategic partner with
significant aviation transaction experience and is fully aligned
with our ambitious growth strategy. The combination of Flybe with
our franchise airline, Stobart Air, will provide us with an
opportunity to increase passenger numbers at London Southend
Airport. We intend to extend and expand London Southend Airport to
cater for the accelerated growth that we are targeting, and Cyrus
Capital is aligned to this aim."
The Subscription Shares, when issued, will be fully paid and
will rank pari passu in all respects with the existing ordinary
shares of 10 pence each in the capital of the Company, including
the right to receive all dividends and other distributions
declared, made or paid after the date of issue.
Application will be made for the Subscription Shares to be
admitted to the premium segment of the Official List of the
Financial Conduct Authority and to trading on the main market for
listed securities of the London Stock Exchange (together,
"Admission").
Admission is expected to take place on or before 8.00 a.m. on 18
January 2019 (or such later date as may be agreed between the
Company and Cyrus Capital). The Subscription is conditional upon,
amongst other things, Admission becoming effective.
The person responsible for arranging the release of this
announcement on behalf of Stobart Group is Louise Brace, Company
Secretary.
Stobart Group Limited C/o Newgate Communications
Charlie Geller, Head of Group Communications
Newgate Communications +44 203 757 6880
Robin Tozer stobart@newgatecomms.com
Ian Silvera
Fiona Norman
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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January 11, 2019 03:01 ET (08:01 GMT)
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