EXCEL AIRWAYS GROUP (EAG) has said it fears it could be under priced if talks between its two biggest shareholders Air Atlanta and Libra do as expected result in a takeover bid by Air Atlanta. Excel says there are suggestions the offer would be "materially below" the current share price.
Air Atlanta, an Icelandic wet-lease specialist, became majority shareholder in EAG when it bought 40.5% of Libra's stake for ”29.9 million in February. Libra currently holds 39% of EAG with management holding on to 18.2%.
A statement issued to the City this week said EAG was aware that Air Atlanta was after the majority of Libra's stake. Air Atlanta would become the majority shareholder, "triggering the need for it to make a cash offer for all of the outstanding share capital not already owned by it". However, it added, "the board of Excel Airways is aware that the price per share at which the share acquisition would take place is materially below the current share price."
Excel Airways Group is made up of the charter passenger airline Excel Airways; Excel Aviation, excelairways.com and Freedom Flights.
http://www.excelairways.com