Flybe gives shareholders vote on whether to jettison chairman

4th Feb 2019 08:46

(Sharecast News) - Troubled low-cost carrier Flybe on Monday said it would call a general meeting to vote on a request by largest shareholder Hosking Partners to replace chairman Simon Laffin.Flybe also said it was inviting aviation industry veteran Eric Kohn to meet with the company's nomination committee after Hosking last week called for him to be named a director and investigate Flybe's bargain-basement sale to a consortium.Hosking, which owns about nearly 19% of Flybe, last week said it was concerned with the fall in the company's value in recent months and the board's handling of the sale process to the Connect Airways consortium of Virgin Atlantic, Stobart Group and Cyrus Capital.Flybe also confirmed it had been approached by former Stobart's chief executive Andrew Tinkler about a possible alternative financing proposal, but told shareholders on Monday the consortium's offer remained the best option.Tinkler approached Flybe on Friday, and the airline said its advisers had held talks with Tinkler's about preliminary proposal for a capital injection and other funding, but no formal proposal was made and Flybe's board viewed the suggested plan as inadequate."The board understands that the capital injection... would only be provided by Mr Tinkler if the sale of Flybe's operating businesses to Connect Airways...does not complete. The board does not consider that the preliminary proposal offers the certainty required to secure the future of Flybe," the company said in a statement on Monday. "The arrangements with Connect Airways preserve the interests of Flybe's stakeholders, customers, employees, partners and pension members.""The board does not consider that the preliminary proposal offers the certainty required to secure the future of Flybe."Flybe said on January 15 that it had reached an agreement to sell its main trading company, Flybe Limited and the digital company Flybe.com, for £2.8m to Connect.Tinkler bought a stake of just over 12% in Flybe in January.