Flybe Share Discussion Threads

[minerve] 24/2/2019 19:39

I know there were idiots on ADVFN but this is getting ridiculous.

[loganair] 24/2/2019 19:38

What is the point of voting as Flybe have already sold their assets to Connect Airways.

[tomdickharry] 24/2/2019 19:07

All shareholders should contact their broker to make sure they get an opportunity to vote for Kohn and the removal of Laffin. Looks like most brokers did not contact shareholders to give them the opportunity to vote against the move to a standard listing. If you were not contacted by your broker about this vote then it would be interesting to ask them for a written explanation as to why not. Was it sufficient for Flybe to rns that a circular would be posted to shareholders on 27 November and then just to post the circular on their website without any contact with brokers? Anybody with a legal background got a view on this?

[minerve] 23/2/2019 21:31

Flybe offices on Friday?

[qantas] 23/2/2019 12:01

Things got bad will go bad, they will have no luck with this one as they have stole it.

Please do your own research as always.

[mhin2] 22/2/2019 20:29

Ipavlou, I dont think Hoskings are interested in the 1p...I think they are seeing if they can pursue `compensatory damages'/damages from any party/parties that can be shown to have acted in a a negligent/illegal manner. Flybe wont have the assets so they must have an eye on the consortium and flybe bod.

Try reading Hoskings statement either above or on the Flybe website (if you dont trust me- but its essentially a cut and paste from a PDF format)


note only 6.34% of the shares- have hoskings reduced their holdings? when? to whom? have they spread the cost of any litigation?

[lpavlou] 22/2/2019 20:00

Can't work out why they would pay the 1p for the equity when it's worthless.

[mhin2] 22/2/2019 18:13

All alludes to a conspiracy, without saying as much...GOOD

Adds more to what is in the public domain. It good to read closely (thats if you can be bothered reading).

I wonder if we will see a fire in Flybe HQ?

I dont think Hoskings will want the assets back (that would be too complex, and possibly too late). I imagine they will be after compensatory damages/damages from all of the parties involved in the `stich up'. Oh that includes Brady and Stob. (Remember BidCO- A Brady Registration-, the forerunner of Connect...)

[mhin2] 22/2/2019 18:01

Lets see what Kohn uncovers, assuming Hoskings get their way (they must have litigation in mind- good)

hxxps://www.flybeplc.com/application/files/presentations/172142%20Project%20Stowe%20(III)%20Circular%20(As%20printed).pdf

PART 3
SHAREHOLDER STATEMENT
Statement to shareholders of Flybe Group plc (“Flybe”/ the “Company”;)
1 February 2019
Dear Shareholders
Requisitioned General Meeting
We are writing, on behalf of Hosking Partners, as holders of, in aggregate, 6.34% of the shares in the Company to seek your support to effect a change at board level of the Company and to investigate the actions of the Company and its advisers.

This step comes in the context of the woeful performance of the board and its advisers in:

• arriving at a position where the directors, in the course of implementing the announced“f ormal sale process”, accept and recommend an offer at 1 pence per share (the Offer)for the Company by the Connect Airways consortium (the Consortium) valuing the Company at £2.2m at a time when its share price was c.16 pence; and
• entering into a binding agreement to sell Flybe’s operating business to the Consortium barely two business days after accepting the Offer and, in avoiding shareholder approval for the same, effectively blocking any other bidder from make an alternative offer (as confirmed in the Company’s announcement of 24 January).
The appointment of a new director, experienced in the industry and unconnected with the Offer, is essential. Eric Kohn as new independent director, will investigate what has happened and represent the interests of shareholders who have little or no visibility upon how this situation has arisen.

1. Interactions with the Company
We were taken by surprise at the announcement of Friday 11 January 2019 that the
Consortium’s Offer had been recommended. In conversations with the current chairman and the executive directors, we were informed that the board hoped other bidders would be encouraged to come forward. We were then frankly astonished on Tuesday 15 January 2019, when it was announced that the Company had agreed to sell its main trading company, Flybe Limited, to the Consortium for £2.8 million.

In response to our urgent questions raised, we were (eventually) told that the board had no other choice because of the Company’s liquidity position.
Yet since 15 January it has become apparent that in fact there were realistic alternatives on the table and/or steps the Company could have taken to improve its position, but the board seemingly did not properly engage or consider such alternatives and instead prioritised the Consortium.

2. Shareholder concerns
That the Offer was recommended at such a low price raises serious concerns that:
• the Offer seriously undervalued Flybe and did not properly value its slots, servicing business and its aircraft fleet; and/or

• the directors were allowing a false market in Flybe’s shares to continue by not
announcing to the market such information as to allow investors to make an informed
decision about Flybe – if (which we do not accept) 1 pence per share actually reflected its true value.

We have lost confidence in the stewardship of the board and believe that they have been either incompetent, badly advised, out-manoeuvred, or all three. In particular, Simon Laffin has not adequately discharged his duties to the Company’s shareholders and his position is no longer tenable.
We therefore propose that Eric Kohn should be appointed as new independent director with immediate effect.

Eric Kohn is the Founder and Chairman of Barons Financial Services, with over thirty years’ experience in all disciplines of corporate finance, including aerospace. He was a member of the Board of Directors of Avcorp Industries, a publicly listed Canadian aerospace manufacturer, from November 2004 to June 2017. He acted as financial advisor to Intro Aviation in its acquisition of the airlines CityJet and VLM Airlines from Air France-KLM, and was a member of the Board of Directors of VLM Airlines from April 2014 to May 2016.

Questions to which the new director will urgently seek answers (based upon such limited information as we have obtained) on behalf of all shareholders include:

• what options, such as approaching Flybe’s lessors to request changes to lease
conditions in order to improve liquidity, were considered by the board from November onwards?
• why did Flybe and its advisers apparently ignore the fact that Virgin and Stobart were sharing information to assemble a bid in breach of their respective NDA obligations as early as late December?
• why was this breach waived by the board on 9 January?
• why did Flybe and its advisers turn a blind eye to Virgin and Stobart approaching lessors, banks and other Flybe creditors to re-negotiate the arrangements – in doing so sharing highly sensitive information in a manner that seems to have put the group into an incredibly vulnerable position financially?
• why were other expressions of interest in the Company seemingly not followed up by the Company with the same energy as was applied to the Consortium? Were other
interested parties afforded equal access to the same information and to the Company’s credit card processors as Virgin and Stobart?
3. Voting recommendation
The first and second resolutions, if passed, will immediately remove Simon Laffin as chairman and a director of the Company and appoint Eric Kohn as a director.
We also consider that Mr Kohn should be empowered by resolution of the shareholders to investigate what has happened from announcement of the sale process to recommendation of the Offer and entry into of the Flybe Limited agreement. As the Company has resisted that resolution, we have sent the Company a requisition for a further meeting dealing only with that resolution, so as not to delay this requisition.

We believe it is in the best interests of the Company and its shareholders to pass the proposed resolutions in order to get answers to the questions posed above.

We urge you to VOTE IN FAVOUR OF EACH OF THE RESOLUTIONS being raised at the
requisitioned General Meeting.

Yours faithfully
Signed by Nortrust Nominees Limited
as registered nominee shareholder on behalf of
Hosking Global Fund Plc
Hosking Partners Equity Fund LLC
Hosking Partners Global Equity Trust

[profitaker] 22/2/2019 16:57

telbap

That was my thoughts precisely, EXCEPT they will be de-listinig on 11th March. So an unlisted, non-trading Plc will have no other value than NAV (slightly under 1p in this case).

[minerve] 22/2/2019 16:13

You can be a PLC without having to list.

[telbap] 22/2/2019 16:10

Do not trading PLC shells have value?? Any AIM wanna be's buy the shell, instant PLC.Maybe the rules have changed but gene the 1.6p value and continued trading.

[hpcg] 22/2/2019 16:08

Today conclusively kills the efficient market hypothesis. No just kills, bludgeons with a club hammer, chops into little pieces and feeds through a mincer. The same could be said for the last few weeks. Here is the evidence that there are cretins operating in the financial markets.

[csmwssk12hu] 22/2/2019 15:15

I don’t know I’m summising, that’s what it lost over the last few years, just a suggestion and if it’s not allowed anymore then men in white coats it is!

[phillis] 22/2/2019 14:07

Csm
How do you know the tax losses reside in Plc?

[sippguru] 22/2/2019 14:02

Wouldn't it be great if whoever is buying at this price came and explained why? Ideally before men in white coats collect them from day release.

[profitaker] 22/2/2019 13:42

There are now HRMC rules which prevent a company from buying another company and then utilising it's tax losses. Good scheme back in the day though !

In any event, the company are crystal clear that they will de-list on 11th March.

*scratching head*

[csmwssk12hu] 22/2/2019 13:07

I get approximately £120m, therefore approximately £20-£25m in tax credits? There may be your answer I’ll imho dyor

[minerve] 22/2/2019 13:05

It's a very good point csm. I thought about that a while back but I don't think it is enough to garner interest from anyone. This share should be suspended.

[csmwssk12hu] 22/2/2019 13:03

Hang on guys you may all be missing something here, Macap 3m cash 2m but what’s the previous years tax losses? Can’t this be purchased by a profitable company then use its tax losses so it pays less tax? I’m sure I’ve heard of this before, not saying that’s what’s happening but not beyond realms of possibilities

[t 34] 22/2/2019 12:27

Who knows ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

[whatsup32] 22/2/2019 11:14

Any chance Tinkler and Hoskins trying to unload

[thomstar] 22/2/2019 11:09

I'm surprised by the volume of trades - not sure who would want these now?

[sippguru] 22/2/2019 11:01

My favourite comment was the daft sod on here who held onto a few shares so they could vote. Seemingly unaware their vote will be meaningless given such a small holding, all shareholders don't get an equal vote! Worse still, they're voting whether they want some money or no money.