Flybe's majority shareholder sells entire stake

The majority shareholder of Exeter based airline Flybe has sold its entire shareholding.

The 48.1% stake owned by the Walker Family Trust through Rosedale Aviation Holdings Ltd was sold for £25.2m.

The move marks the end of a long standing relationship between the airline and the Walker family.

Late steel magnate and former owner of Blackburn Rovers Jack Walker bought the majority share of Jersey European airways in 1983, which was rebranded as Flybe in 2002.

The news comes after Monday’s announcement that Flybe will be cutting 500 jobs in a restructuring bid saw Flybe shares rise by 45%.

The share price has dropped by 10% since news of the Walker Family’s departure.

CEO Saad Hammad issued a statement after the sale: “This transaction marks another milestone in Flybe’s history. I would like to thank Rosedale Aviation for their support over many years.  I would also like to take this opportunity to welcome aboard our new shareholders and thank existing investors who have increased their holding as part of this transaction.

“As I reported in our half year results on Monday 11 November, the economic environment remains challenging and all airlines face risks and uncertainties. I believe, however, that the turnaround of Flybe is gaining momentum.

“The immediate actions announced in our results will incur significant transitional costs, but will deliver a full payback over the next two years. The Board is confident that these initiatives will put the Group on a firm foundation for performance improvement and future growth."
The shares are now placed with institutional investors Liberum Capital.

As a result of the sale the free float of the company is expected to rise to 85%.