EasyJet founder Stelios Haji-Ioannou's Rubicon Diversified Investments today acquired Lonrho Aviation, the parent company of Nairobi-based LCC Fly540, for USD$87.5 million. |
| Stelios Haji-Ioannou (easyGroup) |
As part of the deal, Haji-Ioannou's easyGroup
Holdings Limited will own 5% of the ordinary share capital of Rubicon with the option of acquiring a further 10% in addition to receiving royalties equivalent to 0.5% of revenue. Rubicon will also avail its substantial financial resources and experience with its successful Fly540 brand, to allow for the realization of "FastJet", the soon-to-be Ghanaian startup that will service West Africa.
Lonrho Aviation t/a Fly540 is a Nairobi-based LCC with franchises in Kenya, Tanzania, Ghana and Angola, who, as of 31 December 2011 had Total Assets of US$ 83.5 million and in the 15 months to December
2011, made a loss after tax of US$ 19.0 million. The majority of these
losses were predominantly due to the start-up and establishment costs of
opening the Angola and Ghana operational hubs.
"In addition to the partnership with easyGroup, a key benefit of the Transaction to Lonrho is the substantial cash resources held by Rubicon (£8.8m as at 31 December 2011) which will be available for continued investment in the airline business following Completion.
Fastjet will focus on developing a true low cost airline for Africa based on the existing Lonrho Aviation platform which, in its existing operations as Fly540, had turnover of US$57 million and carried 525,375 passengers in the 15 months to 31st December 2011. Passenger loads continue to increase with Fly540 carrying 53,225 for the month of May 2012."
