No improved offer
Stobart pulls out of Flybe bid talks
Stobart Group has decided against mounting a bid for Flybe after the two parties were unable to reach agreement on satisfactory terms.
In an update to its announcement on 22 February, the Board of Stobart Group said that it is “not in its shareholders’ best interests to increase its latest proposal for Flybe above the level which was rejected by the Board of Flybe.
“Given this, Stobart Group confirms that it does not intend to make an offer for Flybe.”
Stobart Group and Flybe enjoy a range of shared interests as well as a growing franchise arrangement between the two groups’ airlines and Stobart said it intends to continue the collaborative working relationship between both companies.
Flybe said in a statement: “The board of Flybe Group notes the announcement by Stobart Group Limited withdrawing its approach regarding a possible offer for Flybe.
“The board remains highly confident in the prospects of Flybe and believes that the group continues to have an exciting future as an independent company, delivering the Sustainable Business Improvement Plan as set out in June 2017.
“This plan is focused on driving sustainable profit and cash generation and will see the fleet size reduce to an optimum level for the number of identified profitable routes and make the business demand-driven rather than capacity-led.”