African budget airline – Fastjet – has sold its interest in loss-making Fly 540 Ghana for a nominal $1.
Fly 540 Ghana, which suspended operations in the West African country in May 2014, incurred a loss of more than $11 million last year. It has been acquired by DWG-G Company.
“The disposal of Fly540 Ghana is a great step forward in Fastjet’s restructuring plans for our legacy businesses,” Fastjet chief executive Ed Winter said.
“Whilst West Africa remains of interest to us as a low-cost market in the future, our current focus is on expanding our footprint in Eastern and Southern Africa.
“Fastjet has retained the right to discuss the introduction of the Fastjet brand in West Africa when it considers the economic conditions and infrastructural environment to be more favourable,” Winter added.
Fly 540 Ghana was a loss-making investment previously acquired from Lonrho Aviation in July 2012.
Fly540 Ghana’s 800,000 ordinary shares -representing its entire issued share capital – were transferred to the new owners DWG-G Company Limited for a nominal consideration of US$1 in cash. The Sellers gave no representations or warranties in respect of the transfer of the Shares and all liabilities of Fly 540 Ghana transferred with it on completion of the agreement.
As a result of the sale of the Sellers’ interest in Fly 540 Ghana, and the concurrent removal of the Company’s control of that entity, Fly 540 Ghana’s financial results, assets and liabilities will no longer be consolidated into the fastjet Group’s financial statements. The Group’s financial statements as at 31 December 2014 included net liabilities in Fly 540 Ghana amounting to approximately US$6.9 million.
Credit: starrfmonline