Rubicon Software Share Discussion Threads

[tomboyb] 05/12/2011 18:08

In Marketing week -



FastJet low cost airline to take off in Africa

Mon, 5 Dec 2011 | By Branwell Johnson
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FastJet.com, the low cost airline mooted by easyJet founder Sir Stelios Haji-Ioannou, will be focused on opportunities in Africa.


Brand licensing group easyGroup has made a conditional arrangement with investment company Rubicon to create an African airline under the fastJet.com brand.

EasyGroup's airline experts will provide general strategic, management and branding advice on the feasibility of launching a no frills business for the continent.


Sir Stelios (pictured) revealed plans for fastJet in September when it was interpreted as a move to put pressure on easyJet. He and his family are still stakeholders in easyJet and disagree with some elements of the low cost airline's growth strategy.

EasyGroup will take an initial 5% stake in Rubicon, subject to shareholder agreement, and will have the option to take a further 10%. It will also earn a royalty fee for 10 years in relation to Rubicon's use of the fastJet.com brand, depending on specified conditions being met.

Rubicon will have rights to the fastJet.com name for an initial 12 mouths if the project is implemented and provided it meets certain demands the rights will continue on a perpetual basis. These conditions include taking delivery of an aircraft liveried as fastJet or completing a reverse takeover of the airline venture.

Sir Stelios says: "I am looking forward to being part of this new venture to bring low cost air travel to the people of Africa. Africa must now represent the final frontier of this aviation revolution which started in the US in the 70s and which I was proud to have led in Europe in the 90s."

[yashdi] 05/12/2011 17:36

I think they wll transfer the aviation part of lonrho to Rubicon and rebrand it as Fastjet.com. I dont think the company will start from scratch. There is a good team here from Lonrho and Easy Group. I cant see Fly540 competing with Fastjet.com. Intersting times ahead

[tenapen] 05/12/2011 16:57

A bit of a love triangle going down here.

Lonr + EASYgroup* / EASYgroup + RUBI / RUBI + Lonr

* (Hotel)

I wonder what will happen to LONR's Fly540 ?

[abcd1234] 05/12/2011 16:37

Very strong buying into the close ;o)

[alpha534u] 05/12/2011 16:33

good finish....... hardly any shares .....low market cap ...... big names with big business model in place....... totally dif share ....

[mister md] 05/12/2011 16:24

totally different proposition now, low marketcap and not sure if this will still be in the single digits by end of week ;)

[falia] 05/12/2011 16:21

here comes 10p

[sweepie2] 05/12/2011 16:20

What goes up quick can come down as quick, I wouldn't chase them that hard

[kinghorm23] 05/12/2011 15:51

They have stock to offer currently, 150k online at 7.75p mid price

[wisteria2] 05/12/2011 15:21

Think the scramble was today! hence up over 100%.......

[jermaine77] 05/12/2011 15:11

Simon Cawkwell has espoused on this today as well.

Think there will be a scramble for RUBI tomorrow morning when people have assessed and re-assessed this news overnight.

[olly2] 05/12/2011 15:10

bid moving up..

[jermaine77] 05/12/2011 15:10

Official anthem for this thread, courtesy Kaiser Chiefs

[mister md] 05/12/2011 14:49

Afternoon rally commencing....?

[tomboyb] 05/12/2011 14:24

Probably the best descriptive of todays story from the ft:



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December 5, 2011 2:03 pm
Sir Stelios and Rubicon explore African airline
By Andrew Parker and Arash Massoudi
The founder of EasyJet is proposing to study establishing a low-cost airline in Africa with a company that has links to Lonrho, the pan-African conglomerate that has significant aviation interests.
Sir Stelios Haji-Ioannou, whose family is EasyJet's largest shareholder with a 38 per cent stake, is preparing to work on a feasibility study for a new African airline with Rubicon Diversified Investments, an investment company that once specialised in computer software.

In September, Sir Stelios shocked the aviation world when EasyJet, Europe's second-largest low-cost airline by revenue, announced it had been informed by him that he was planning to set up a new carrier.
No details about the airline were given at the time, other than it would have the brand name Fastjet, but the disclosure highlighted an acrimonious and protracted dispute between Sir Stelios and EasyJet over strategy.
On Monday, Rubicon said it had entered into a conditional agreement with EasyGroup, Sir Stelios' private investment vehicle, to collaborate on a study for a low-cost African carrier.
Rubicon's shareholders will be asked to approve the agreement on December 13. Robert Burnham, chairman, said: "We are very pleased to have secured the management team of EasyGroup to advise us on our proposed strategy of building a world class aviation company with a focus on the significant potential of Africa."
Sir Stelios said: "I am looking forward to being part of this new venture to bring low-cost air travel to the people of Africa."
Under the conditional agreement between the two companies, Rubicon would issue shares to EasyGroup that initially amount to a 5 per cent stake.
EasyGroup would then have the option to subscribe for an additional 10 per cent stake in Rubicon. The amount EasyGroup would pay for the Rubicon shares has not been disclosed.
EasyGroup would also receive royalty fees from Rubicon over 10 years for use of the fastjet.com brand.
Rubicon is planning to pay £480,000 to EasyGroup over the next six months for a team of aviation executives led by Sir Stelios who will work on the feasibility study.
David Lenigas and Geoffrey White, chairman and chief executive of Lonrho, are due to join Rubicon's board if the company's shareholders approve the move on December 13.
Lonrho already has significant aviation interests. It controls an African airline called Fly540 that operates from hubs in Angola, Ghana and Kenya.
Lonrho is due to secure a 12.7 per cent stake in Rubicon after participating in a share placing that raised £400,000 for the company last month.
Sir Stelios and Lonrho already have a commercial partnership. In July, Lonrho signed an agreement to use Sir Stelios' EasyHotel brand for a network of 50 hotels operated by the conglomerate across Africa by 2016.
Since Rubicon's flotation in 2006, the company has never achieved a pre-tax profit, and in July it announced it was selling its software business and considering alternative investment plans. It has a market capitalisation of £3.5m.
EasyJet declined to comment on Monday. In September, EasyJet signalled it was prepared to go to court to enforce a deal, reached last year, under which Sir Stelios agreed not to use his own name "or a derivation of it" to brand any airline which flies to or from any European country for five years.
Sir Stelios said in September he had terminated the agreement, claiming that EasyJet's directors had breached its provisions. EasyJet denied flouting the agreement.

[comedy] 05/12/2011 14:13

oh dear did you miss another 1 king???

[kinghorm23] 05/12/2011 14:06

market maker delight.

All buys at the high, now it drops and all sales, gather them all in
then push it higher again and watch the punters chase it again.

So pleased you missed out on this comedy, anybody that is a serial
pump and dump conman deserves it !

[tomboyb] 05/12/2011 13:23

Also in the evening standard -

[petersmith6] 05/12/2011 13:21

each to the own.....i'm in you the long run

[mister md] 05/12/2011 13:05

looking at the trades I see a few people are selling out at a loss !

[jonnyfro] 05/12/2011 12:40

Rubicon in Stelios venture

05/12/2011 Ben Jaglom



Cash shell Rubicon Diversified Investments (RUBI) is teaming with easyJet founder Stelios Haji-Ioannou to consider launching a budget airline for Africa.

The AIM-quoted vehicle, which this July sold its primary Rubicon Software business in a deal worth £140,000 said it was working with the Monaco-based entrepreneur to work on the feasibility 'of implementing a low-cost, point-to-point, no frills, all jet aircraft business model for Africa'. The Greek-born billionaire is to take a 5 per cent stake in Rubicon with the option to acquire a further 10 per cent through his easyGroup business.

As part of the agreement Rubicon is to hold the right to use the 'fastjet' brand name, for which easyGroup will receive a royalty fee for 10 years. In return easyGroup will provide branding advice to the company which could lead to Rubicon holding the exclusive rights to fastjet.com for an initial twelve months, to be extended on a 'perpetual basis' should Rubicon have 'taken delivery of a western standard jet aircraft liveried as fastjet.com or completed a substantial transaction which is classified as a reverse take-over under the AIM rules.'

This September the entrepreneur announced he was launching a rival to the business he founded in 1995 and floated in 2000. This followed a challenging relationship with the group's management, which ended up with Haji-Ioannou winning a court case in 2010 over the use of the 'easy' name.

This November Rubicon raised £400,000 via a placing at 1p a share with shareholders including Africa-focused conglomerate Lonrho, also declaring the proposed appointment of Lonrho chairman and CEO David Lenigas and Geoffrey White to the board of directors. The company remarked it was planning 'to focus on investment opportunities in the aviation and aviation services sector with a particular focus on Africa'

Rubicon chairman Robert Burnham enthused the company was 'very pleased' to have 'secured the management team' of easyGroup to help advise it 'on our proposed strategy of building a world class aviation company with a focus on the significant potential in Africa'.

Shares in Rubicon rocketed 119 per cent following the announcement to 7.63p this morning amidst excitement over the possibilities of the deal. Haji-Ioannou is a considerable figure in the aviation industry and his involvement in Rubicon for an Africa-focused airline will be closely scrutinised by investors. One to keep a close eye on.

[petersmith6] 05/12/2011 12:24

time for a little breather before more upwards .......

[crosswire] 05/12/2011 11:56

RUBI

Shares outstanding 47.83m
Free float 8.46m

[alia] 05/12/2011 11:56

yes plenty of press all week on this