Airline Flybe soars as major shareholder calls for chairman’s head after Virgin deal
A row over the future of Flybe is set to escalate as the company threw its support behind chairman Simon Laffin days after its biggest shareholder called on him to step down.
Last week Flybe’s shares plummeted by as much as 47 per cent as the airline said it was pushing ahead with a 1p-a-share offer from a Virgin-led consortium.
Read more: Flybe shareholder demands EGM in bid to oust chairman as row over cut-price sale continues
Shares rose 33 per cent in the first half hour of trading this morning as the company confirmed that Hosking Partners, which owns almost 19 per cent of the carrier, has demanded a vote on the future of Simon Laffin, who has run the board for five years.
It hopes to replace him with Eric Kohn. The Swiss and British national is a former reservist Lieutenant Colonel with the army’s airborne forces with decades of experience in the aviation sector.
Before stepping down in 2017, Kohn was a director of Avcorp, a listed Canadian aerospace manufacturer.
Flybe said: “The board reaffirms that it has acted at all times in the interests of its shareholders and all its stakeholders, through an extremely difficult and challenging period.
“The board continues to have full confidence in its chairman, Simon Laffin, and believes that any independent scrutiny of its conduct will support the board's decision-making”
Hosking Partners approached Flybe demanding a vote on Laffin’s future on Friday, a day after the budget airline took the first £10m of an up to £20 bridging loan ahead of the £2.8m takeover.
Read more: Flybe shares tank as airline pushes on with 1p-per-share Virgin-led bi
The acquisition values Flybe shares at 1p. Less than six months ago they were trading for around 40p per share.
City PM has approached Hosking Partners for comment.