Monarch Group (Monarch Airlines) has announced Greybull Capital LLP is the preferred bidder to acquired the group. The company has also announced that the various labor groups have agreed to major concessions to make the acquisition possible. The group issued these two statements:
The Board of Monarch Holdings Limited has announced that Greybull Capital LLP is the preferred bidder to acquire Monarch from the Group’s shareholders, principally the Mantegazza family.
Greybull is a family office with a focus on investing in private companies across a diversified range of industry sectors. Greybull backs incumbent management teams to support and invest into established businesses and brands and creates long-term sustainable and profitable businesses. It views an investment in Monarch as a long-term opportunity in a very strong brand with great potential in all of its markets, and intends to be supportive shareholders throughout Monarch’s next chapter.
Completion of a deal remains subject to the successful outcome of ongoing negotiations, whereupon Greybull intends to provide significant capital to Monarch in order to grow the Group and to capitalize on the long established and trusted brand name.
Conditional upon the successful conclusion of these negotiations with Monarch stakeholders, a transaction is expected to complete towards the end of October.
The Monarch Group has also confirmed that each of its staff groups has agreed to major concessions on pay and terms and conditions as part of its plan to evolve into a leading scheduled European low-cost airline.
Following supportive discussions with union representatives of BAPLA, the pilots union, and UNITE, which represents its cabin crew and engineers, staff were balloted on the proposed changes and on average more than 90% voted in favour, with a proportionately high level of staff deciding to vote.
Results showed pilots voted 96% in favor with over 90% of cabin crew voting yes and engineers at Monarch Aircraft Engineering Limited (MAEL) also voting 88.43% in favor.
The changes impact all areas of the business and involve concessions of up to 30% in salaries, as well as changes to working patterns and other conditions.
Copyright Photo: Paul Bannwarth/AirlinersGallery.com. Airbus A321-231 G-OZBO (msn 1207) prepares to land at Tenerife Sur.