Tanzanian LCC, fastjet (FN), has announced that easyGroup, the investment vehicle of Mr Stelios Haji-Ioannou has increased its stake in the airline from 3% to 5.81% in lieu of all royalty and consultancy payments due to the group up until year end.
Under the deal, easyGroup Holdings Ltd, the owner and licensor of the fastjet brand, will now
acquire 110'334'156 newly issued fastjet shares set to become available
at the end of the month.
According to fastjet’s chief executive officer Mr Edward Winter:
"We are pleased that Stelios has chosen to increase his holding in the Company, a testament to his confidence in fastjet’s success and faith in the low-cost airline model he pioneered. fastjet values its relationship with Stelios as a shareholder and brand licensor, and also for the unparalleled low cost airline experience he brings as a consultant to the Company."
In response, Mr Haji-Ioannou said he had faith in Mr Winter and his management team, adding that the roll out of the ambitious project would "clearly take more time and more investment".
"When we signed the original agreement a year ago, the company had very little other than a vision to start operating a proper low cost airline in Africa. Today, some nine months after the first Airbus 319 flight in Tanzania, fastjet has demonstrated that travellers in Africa will react in exactly the same way as consumers elsewhere, to the availability of low cost fares. There is only one continent on earth where low air fares are not widely available yet," he said.
He concluded by saying he would be watching their progress with "great interest."
