South Africa's Fastjet puts in offer for 1time Airline

South African carrier Fastjet announced Wednesday it put in an offer to buy 1time Airline which went into liquidation in November.

South African carrier Fastjet announced Wednesday it put in an offer to buy 1time Airline which went into liquidation in November.

Fastjet has entered into an options agreement to purchase the whole issued share capital of the low cost airline from its parent company, 1time Holdings, for $0.12m. The agreement follows reports the two were in talks.

An acquisition would be subject to UK and South African regulatory approval and consent from shareholders of Fastjet and 1time Holidays.

1time Airline would also need to reach a settlement with its creditors through a court scheme of arrangement.

The transaction would give Fastjet the right to operate domestic and regional air services in South Africa. The company will be taking up to three of the 12 aircraft that were in the 1time fleet when the business went into provisional liquidation.

Initial routes would be domestic, serving Johannesburg, Cape Town, Durban, Port Elizabeth and East London.

Ed Winter, Chief Executive Officer of Fastjet, said: "I am pleased we have managed to reach a provisional agreement with all parties to buy 1time. Due to protracted negotiations we will not have 1time flying before the Christmas but very much hope that 1time will be flying again early in the New Year.

"The acquisition of 1time supports fastjet's growth into a pan African low cost carrier and the synergies with fastjet' s existing operations will potentially increase the number of available route networks from South Africa into the rest of Africa. 1time will be rebranded as fastjet brand and sold through fastjet.com."

Winter said the lower fares the airline offered would boost the economy and create more jobs.

Fastjet shares were up 0.72% to 3.50p at 8:30 Wednesday.

RD

Recommended

Three stocks to provide income and growth in good times and bad
Share tips

Three stocks to provide income and growth in good times and bad

Professional investor Matthew Page of the Guinness Global Innovators fund picks three resilient stocks that should pay predictable dividends that grow…
5 Aug 2022
Share tips of the week – 5 August
Share tips

Share tips of the week – 5 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
5 Aug 2022
Invest in defence stocks as war goes hi-tech
Share tips

Invest in defence stocks as war goes hi-tech

The operational efficiency of defence equipment and cybersecurity is developing rapidly owing to the war in Ukraine, says Jonathan Compton. Here’s wha…
4 Aug 2022
Enjoy the bear market rally while it lasts
Stockmarkets

Enjoy the bear market rally while it lasts

Investors seem to think that a weaker US economy will cool inflation and see the Fed relent on interest rate rises. But that optimism may be misplaced…
3 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
What is stagflation and what can be done about it?
UK Economy

What is stagflation and what can be done about it?

The threat of 1970s-style stagflation has returned, here’s what you need to know.
4 Aug 2022
Share tips of the week – 5 August
Share tips

Share tips of the week – 5 August

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
5 Aug 2022