Charter airline at centre of takeover talks

Excel Airways was today heading for a takeover by Iceland-based Air Atlanta after it emerged the UK company’s two biggest shareholders were in talks.

Air Atlanta, which currently owns 40% of Excel, is considering a move to buy most of the 39% stake held by Cyprus-based Libra Holidays – a decision that would lead to it making an offer for the remainder of the company’s stock.

Excel added in a statement that it was aware the rest of the shares would be bought at a level “materially below” the current share price. Just under 20% of the company is owned by management, who saw shares fall 33% to 110p today.

Excel, which was set up four years ago by a team of industry veterans, flies to 75 destinations from three main bases at Gatwick, Manchester and Glasgow. It specialises in charter services but also has a growing seat-only operation.

Libra originally held an 80% founding stake in Excel but reduced it to around 39% following a £30m (€43m) deal with Air Atlanta earlier this year.

Excel said today: “The board is aware that talks have taken place between Air Atlanta and Libra which could result in Air Atlanta acquiring the majority of Libra’s 39% shareholding.

“In this event Air Atlanta would acquire a majority shareholding and will trigger the need to make a cash offer for all of the outstanding share capital not already owned by it.”