Flybe agrees to a vote on ousting chairman as takeover faces challenge

Turbulence at Flybe continued on Monday as the embattled airline agreed to hold a vote on ousting its chairman and said it has received a proposal that could muddy a planned takeover deal.

The regional carrier said that after a request from its biggest shareholder — Hosking Partners which has a 19% stake — it will call a general meeting to consider replacing chairman Simon Laffin with aviation expert Eric Kohn.

Hosking wants Kohn to be made a director to investigate the cut-price sale of Flybe agreed last month.

Flybe is set to be taken over by a consortium comprising Stobart Group, Virgin Atlantic and Cyrus Capital Partners. But the rescue has come under fire: it valued the business at 1p per share, a 94% discount to a day before the sale announcement.

Flybe today confirmed it has since received an alternative financing proposal from ex-Stobart boss Andrew Tinkler, who has a 5.91% stake in Southend airport-owner Stobart.

The proposal by Tinkler, who also is in a spat with Stobart over his dismissal from the board, comprises a “capital injection and replacement of the funding” provided by the consortium.

Flybe’s board does not consider the deal “offers the certainty required to secure the future” of the firm.

The shares rose 0.36p to 3.56p.

David Madden, analyst at CMC Markets, said the takeover tussle “has driven up demand for the struggling stock”.