Silverjet, the British based exclusively business class airline, yesterday announced that it has received a $25 million investment from a Middle Eastern investor.
The company’s working capital has deteriorated following recent increases in fuel prices and tightening of credit conditions in the airline industry. The memorandum of understanding sets out the investor’s intent to invest a further $75 million in the ongoing development of the firm.
The equity element will amount to approximately $8 million which will be subscribed at 17 pence per share. The new shares will represent 28 percent of the enlarged share capital.
Brand and position
The investor will participate in the development and rollout of Silverjet’s international brand and concept into new markets throughout the Middle East, the Far East and Africa.
Lawrence Hunt, Chief Executive of Silverjet, commented: “This investment places Silverjet in a strong position to further develop our brand and proposition. It is particularly encouraging to have secured this agreement in a challenging environment for all airlines.”
It is expected that a debt facility will be made available to the company, and on completion of the investment, the investor intends to appoint two representatives to Silverjet’s Board of Directors.
May 1, 2008
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