Lonrho sells African-focused airline Fly540 for $85.7m, name to be changed to FastJet

Lonrho Plc on June 13, 2012 agreed to sell its aviation business, Lonrho Aviation which operates Fly540, to a British investment firm Rubicon Diversified Investments Plc for $85.7 million.

The Fly540 airline name will be changed to Fastjet by July 2012 when Rubicon’s shareholders vote on the transaction June 29, at the company’s general meeting.

Lonrho operates the Fly540 in Ghana, Kenya, Tanzania and Angola.

Commenting on the acquisition, Robert Burnham, Chairman of Rubicon said “We are delighted to be announcing the acquisition of Lonrho Aviation’s Fly540 business…the combined talents of Rubicon’s management team and our partners from Lonrho and Sir Stelios’ easyGroup will transform Fly540, already a growing and successful business, into Fastjet, a low cost, point-to-point, no frills all jet airline for Africa.”

As at December 31, 2011, Lonrho said Fly540 had total assets of $83.5 million and in the 15 months to December 2011 made a loss after tax of $19 million.

In a statement, David Lenigas, Executive Chairman of Lonrho who confirmed the transaction said “the next step in the growth of the business requires a World class aviation team to develop the business to meet the growing demand for a scheduled regional airline in Africa.”

By Ekow Quandzie