Rubicon Diversified In Conditional Agreement With EasyGroup
Rubicon Diversified Investments PLC (RUBI.LN), said Monday that it has entered into a conditional arrangement with easyGroup Holdings Ltd, a company controlled by Stelios Haji-Ioannou, under which it is proposed that easyGroup will become a shareholder in Rubicon.
Main Facts:
-The company will use the services of Stelios Haji-Ioannou and easyGroup's experienced aviation management team to provide general strategic, management and branding advice on the feasibility of implementing a low cost, point-to-point, no frills, all jet aircraft business model for Africa.
-Under the proposed arrangements, and conditional on the resolutions being approved at the GM, easyGroup will be issued shares in Rubicon representing an initial 5% holding subject to certain conditions and will have the option to subscribe for a further 10% of the Company's enlarged issued share capital.
-EasyGroup will also earn a royalty fee for 10 years in relation to the company's use of the fastjet.com brand once certain conditions have been met.
-Subject to the GM, the company will be allocating GBP80,000 per month for six months with effect from Dec. 13, for a team of 4-5 senior aviation executives selected and led by Stelios, in addition to an one-off payment of GBP25,000 which became payable with the signature of the letter of intent.
-EasyGroup will provide branding advice to Rubicon which, if accepted, would lead to an agreement under which easyGroup will provide Rubicon with exclusive rights to use the fastjet.com brand for an initial period of twelve months.
-Following this period, provided the company has taken delivery of a western standard jet aircraft liveried as fastjet.com or completed a substantial transaction which is classified as a reverse take-over under the AIM Rules, Rubicon's rights to the fastjet.com brand would continue on a perpetual basis.
-Should no such transaction occur within 12 months, all rights in the fastjet.com brand would revert to easyGroup with no further obligations on either party.
-Rubicon shares at 0948 GMT up 2 pence, at 54.7% at 5 pence, valuing the company at GBP1.66 million.
-By Razak Musah Baba, Dow Jones Newswires
