Fastjet looks to sell Zimbabwe business in effort to survive till 2021

Fastjet said Wednesday it is in talks to sell its Zimbabwean operations to a consortium led by its biggest shareholder Solenta Aviation for $8m, a deal which could help the South African low-cost carrier stay alive until 2021. The company, whose shares plummeted 32% to a record low after the announcement, said it was also in talks with some of its major shareholders for a cash call. Fastjet said if the restructuring plans do not pan out by the end of February, the Africa-focussed company would not be able to continue trading as a going concern. The proposals come after Fastjet lost its Chief Executive Officer Nico Bezuidenhout - a turnaround specialist - to South Africa’s Mango Airlines in July. Bezuidenhout had been instrumental in reviving Fastjet’s fortunes and shore up its dwindling cash pile, as it was saved from going under after striking a deal to raise funds late last year. The company was also forced to divest operations in Tanzania, its home market, after battling tough trading conditions there. Fastjet, which has operations in Zimbabwe and South Africa, said it continues to be loss making and is currently expecting a loss after tax of around $7m to $8m for 2019, compared with a loss of $65m a year earlier.<br/>