Windfall for Regional air staff
Friday 22 May 1998
The shares are expected to be priced at around 150p. The 1,200 staff have been allocated 4 per cent of the shares worth pounds 3.8m by Sir Michael Bishop, who owns a controlling stake in the airline. Sir Michael will net pounds 10m from the flotation, leaving him with a 30 per cent stake worth pounds 29m.
Terry Liddiard, the chief executive, will make about pounds 1.6m from the sale and will retain a 6 per cent stake worth pounds 5.8m.
British Regional Airlines operates under the Manx Airlines name and as a British Airways franchise. Of its 86 routes, 70 are flown under the BA franchise.
The flotation will raise about pounds 20m net of expenses and will see 60 per cent of the enlarged share capital sold to new investors. The proceeds will enable the group to pay back pounds 8m of debt to Sir Michael's flagship airline British Midland and use the rest to fund a fleet expansion. It currently has 46 aircraft but it has has placed orders for up to fifteen 49-seat Embraer 145 jets which will allow it to expand its route network into Europe. Mr Liddiard said that central Europe was likely to be a particular target.
Despite the success of the Thomson Travel offer with the general public, the British Regional Airlines flotation will not be open to small investors. The flotation will take the form of a placing by Dresdner Kleinwort Benson, which will receive about pounds 2m in fees.
Last year the airline flew 2.16 million passengers on regional routes from the Isle of Man and regional UK airports.
The airline faces little competition on its route network either from rival carriers or other forms of transport.
It made pre-tax profits last year of pounds 3.9m on turnover of pounds 165m but analysts are pencilling in profits of more than pounds 5m this year.
Kirstie Allsopp has waded into the female fertility debate again
Gillian Anderson lays into gender disparity in Hollywood
The Sistine Chapel is set to be illuminated with thousands of LEDs
- 1 Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
- 2 Prince held a Facebook Q&A and this is the only question he answered...
- 3 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 4 35,000 walrus gather on north-west Alaska beach 'for a rest'
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Snoop Dogg and Jared Leto buy a stake in Reddit as A-list invests $50m
Prince held a Facebook Q&A and this is the only question he answered...
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
Brad Pitt, on the moment he completely lost his temper with Clint Eastwood's son
Jennifer Lawrence nude photos leak: More celebrities allegedly targeted as third wave of hacked images released
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
The Osborne Ultimatum: Chancellor’s benefits freeze bombshell will affect ten million households
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Former Tory donor Arron Banks ups his Ukip donation to £1million following William Hague 'nobody' comment
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...