fastjet scraps convertible arrangement with Bergen

Fastjet (LON:FJET) has scrapped its convertible arrangement with US financier Bergen Global because of the potential adverse impact on the share price.

The Africa-focused airline arranged the £15.7mln convertible securities deed in March.

David Lenigas, Fastjet’s chairman, said the arrangement no longer offered the best value to the company.

“The board believes other sources of finance available to the company to be in the better interests of the company and its shareholders and has accordingly terminated the Convertible Securities Deed."

The agreement would have seen Fastjet receive payments in six tranches of about £2.63mln over 18 months from last March.

Bergen would have received convertible securities for the cash that could have been exchanged in to shares at close to the market price.

An initial amount with a nominal of £2,556,750 was issued to Bergen when the arrangement was announced on 8 March, but since then there have been no other convertible securities issued Fastjet said today.