Virgin Atlantic, Stobart Group To Take Over Flybe

UK regional airline Flybe is to be taken over by a consortium that includes Virgin Atlantic and Stobart Group. The Connect Airways joint venture will acquire Flybe in a cash offer of 1 penny per share, or just under GBP£2.2 million (USD$2.8 million) in total. Connect is made up of New York-based Cyrus Capital Partners which holds 40 percent of the equity, and Virgin Atlantic and Stobart Group with 30 percent each. In addition to the stock purchase, the Connect partners will make available a £20 million bridge loan facility to support Flybe's ongoing working capital and operational requirements. A further £80 million of funding will also be made available by the group.