Fastjet launches £3.9mln open offer

Budget African airline Fastjet (LON:FJET) confirmed it plans to raise up to an additional £3.9mln through an open offer.

It comes after last week’s £11mln share placing; both share sales will be carried out at the same price of 1.6p per share.

The open offer gives existing shareholders the opportunity to participate in the funding, on the same terms as the institutions subscribed for placing shares.

“The very successful completion of the fund-raising we announced last week was a highly significant step forward for Fastjet.

“The proceeds raised exceeded our expectations and allow us to confidently move to the next phase of the company’s development with further international routes, additional aircraft and more bases and to fulfil our objective of becoming the leading pan-African low-cost airline.”

In last week’s placing the company issued 687.5mln new shares at 1.6p.

Directors, including chief executive Ed Winter and finance chief Angus Saunders, have accounted for around £1mln of the £11mln, while Sir Stelios Haji-Iannou’s easyGroup also invested £1mln in the placing.

EasyGroup has also agreed to cancel the management consultancy fee under the brand licence in exchange for the receipt of 94.3mln Fastjet shares worth around £1.5mln. It also means an end to the previously agreed cash payments equating to around £4.3mln over the next eight years.