More woes for Zimbabwe as Fastjet plans exit

accreditation
Fastjet. (Photo: Supplied)
Fastjet. (Photo: Supplied)

Low cost airline Fastjet has announced plans to dispose of its Zimbabwean unit. 

In a statement released on Wednesday, Fastjet said it is looking to offload the Zimbabwe unit to a consortium led by its major shareholder, Solenta Aviation, for US$8m (about R118m at current exchange rates).

Fastjet said if the restructuring plans do not pan out by the end of February, the Africa-focused company may not be able to continue trading as a going concern.

Persistent volatility and uncertainty in the Zimbabwean market would see the company report a loss after tax of around US$7m to US$8m (R103 - R118m at current exchange rates) for 2019, compared with a loss of US$65m (R960m) a year earlier.

"The group is, therefore, currently in active discussions with certain of its major shareholders to explore various options including raising equity capital and/or a restructuring of the company involving the disposal of Fastjet Zimbabwe," it said. 

"The disposal, if agreed, approved and implemented, would be expected to de-risk the significant uncertainty and cash drain that shareholders have historically suffered, and allow the group to continue operating under a more stabilised and simpler business model," its CEO Mark Hurst said.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For only R75 per month, you have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today.
Subscribe to News24
Rand - Dollar
15.38
+0.2%
Rand - Pound
21.03
+0.0%
Rand - Euro
17.56
-0.0%
Rand - Aus dollar
11.09
-0.1%
Rand - Yen
0.13
-0.1%
Gold
1,817.69
0.0%
Silver
22.96
0.0%
Palladium
1,883.50
0.0%
Platinum
974.00
0.0%
Brent Crude
86.06
+1.9%
Top 40
68,448
-1.1%
All Share
75,160
-1.0%
Resource 10
74,434
-1.5%
Industrial 25
94,294
-1.0%
Financial 15
15,565
-0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot