Lonrho takes backseat in African airline deal, stock soars

Lonrho, the sub-Sahara focused investment company has sold off its airline division in an all-share deal worth 85.7m dollars.

The airline will be acquired by an outfit called Rubicon Diversified Investments and renamed Fastjet.

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The founder of Easyjet, Sir Stelios Haji-Ioannou, will also become a shareholder in the new venture and will assemble a specialist aviation team to run it, led by Ed Winter, formerly the Chief Executive of GO.

Lonrho says it will now become a passive shareholder, while the new management team turns Fastjet into a low cost scheduled passenger airline.

At 12:34, Lonrho shares were up 11.4%.

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