Lonrho, which has various business interests and investments across Africa, said on Wednesday (June 13) it had sold its Fly540 aviation unit to British investment firm Rubicon, in which Hajj-Ioannou’s easyGroup has a 5% stake, for $86 million in Rubicon shares.
Fly540, which is based in Nairobi and operates regional jet services to Mombasa in Kenya and international destinations in Tanzania, Angola and Ghana, will become the template for the new LCC FastJet, which easyGroup claims will operate to European standards of safety and quality.
Rubicon, easyGroup and Lonrho have been working on feasbility studies with regards to establishing a new airline for more than a year.
Rubicon expects to complete the deal by July 2 and has said that Ed Winter, former CEO of Go and former COO of easyJet, will become Chief Executive Officer of Rubicon and join the Board as one of easyGroup’s nominated directors.
The take over deal is subject to shareholder approval which Rubicon will seek to get at a general meeting to be held on June 29, 2012.