FastJet To Grow Tanzanian Presence By Offering Ownership To Local investors

December 3, 2014 Felicia Omari Ochelle Business, Logistics & Transportation

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VENTURES AFRICA-Low-priced African carrier, FastJet, plans to increase the stake held in its Tanzanian operation by local investors, as it seeks to reinforce its low cost model in Africa.
The airline has appointed a nominated adviser, Enterprise Growth Market Advisors Ltd for the purpose of the deal. The transaction will be done by placing new shares to local investors to take the proportion of shares they hold in Fastjet Tanzania to a majority 51 percent.
“We are delighted to have found a suitable structure which allows for Tanzanian participation in FastJet Tanzania, whilst providing the opportunity to raise capital from local Tanzanian investors,” said Ed Winter, Interim Chairman and Chief Executive Officer of FastJet plc.
Winter says the move is both positive and logical in the implementation of the carrier’s model of local investment and local finance for growth. It will also
“aid in FastJet Tanzania being granted additional rights under Bilateral Air Service Agreements with other African countries on the continent.”
Fastjet is planning to accelerate expansion over the next 18 months, with several new international routes from its original base in Tanzania. The airline believes growth in local ownership will give it the national identity it needs, thereby placing it in a better position to negotiate new routes.
The carrier did not, however, say whether the stake will be sold through a private placement or listing by introduction on the Dar es Salaam Stock Exchange.
The airline aims to deliver the same service as its European low-cost counterparts to the African continent. In October 2013, FastJet also signed an agreement with one of Africa’s largest cargo operators, BidAir Cargo, to carry cargo on its fleet of Airbus A319s.