Fastjet completes acquisition of its branding from easyGroup

Fastjet’s remaining branding ties with easyGroup - the owner of the ‘easy’ brand as used by easyJet and others in the UK - were officially severed on Tuesday, as the company confirmed that the acquisition of its brand assets had been completed.

The AIM-traded firm had previously announced that it entered into an agreement with easyGroup on 29 June to acquire all intellectual property rights associated with the fastjet brand for a total consideration of $2.5m cash.

It said at the time that it would result in savings to the company over the next five years, and that it represented a “major step forward” as the company continued with its stabilisation efforts under new management.

“Brand development is an integral part of building a successful consumer facing business and represents a substantial investment for any airline - it logically follows that your brand, an asset to be leveraged for the benefit of shareholders, should be under your full control and ownership,” said Fastjet CEO Nico Bezuidenhout at the time of the announcement.

“We are happy to have reached agreement with Sir Stelios and appreciate the ongoing confidence he has expressed in the fastjet business and leadership team.”

Sir Stelios Haji-Ioannou, who founded easyJet and established the fastjet brand in 2012, said fastjet is a “great brand” in all its African markets, making it a “highly valuable asset” for the company.

“I have accepted the view of the current board that the company should own its own brand rather than licence it from me.

“I feel we have agreed a fair price for its transfer - $2.5m - which is less than what the company would have had to pay over the next five years.”

Sir Stelios said he still held shares worth about £1.3m in the company and as such he would be a supportive shareholder, hoping to realise “significant upside potential” as fastjet grew.

“From the decisive actions thus far taken by the new Management and Board, and early indicative outcomes, I am encouraged that fastjet's direction of travel is now on the right course.”