On 9 July 2020, fastjet, the low-cost African airline, provided details of historical contracts it entered into, via its subsidiaries fastjet Zimbabwe, FedAir and fastjet Mozambique with SAHL, Solenta Aviation and Solenta Mozambique (the "Contracts").
SAHL is a Maltese registered holding company of several airline and maintenance investments and aviation focused businesses throughout Africa. Solenta Aviation and Solenta Mozambique are both subsidiaries of SAHL and are considered related parties to the Company by virtue of being subsidiaries of SAHL, which is a Substantial Shareholder of the Company as defined in the AIM Rules.
The Contracts outlined in the announcement on 9 July 2020 (the "Contracts Announcement") have been identified as related party transactions under Rule 13 of the AIM Rules, however, were not identified as such at the time. Liberum Capital Limited ("Liberum") was not consulted at the time the Contracts were entered into as required by AIM Rule 13.
The Directors of the Company, excluding Mark Hurst (Group Interim Chief Executive Officer), who is considered a related party to SAHL, consider that, having consulted with the Company's Nominated Adviser, the terms of the following Contracts are fair and reasonable insofar as its Shareholders are concerned:
· Operational CMI Services Agreement
· Charter Services
The Directors of the Company, excluding Mark Hurst (Group Interim Chief Executive Officer), consider that the terms of the following Contracts are fair and reasonable insofar as its Shareholders are concerned, however, Liberum has not been able to advise that they are fair and reasonable insofar as the shareholders are concerned:
· Aircraft Maintenance Services Agreement
· Amendment to the Operational CMI Services Agreement
· Supply of Services Agreement
· New Supply of Services Agreement
· Base Maintenance FJF
· Base Maintenance BBD
Capitalised terms used but not defined in this announcement have the same meanings as set out in the Contracts Announcement.