Flybe: Up 30% Today, Time To Buy This Stock?

Flybe Group plc trading up 30% on the open and here is why…Flybe operates a fleet of over 80 aircrafts through Flybe UK and Flybe aviation services segments. These provide aviation services such as maintenance, repair and overhaul services to its own fleet and to third party customers. Flybe caught the attention of investors and the media rightly so when it started to warn on profits performing below market expectations back in mid-October due to a weaker pound and higher fuel prices. A month later from the profit warning Flybe puts itself up for sale, attracting positive talks from Virgin Atlantic and IAG at the time lining up bids.Since then we have seen Flybe assuring shareholders that a takeover bid has now been accepted by several larger airlines, including Virgin Atlantic, Stobart Group and investment firm Cyrus Capital Partners. Flybe, at the time of the bid was trading at £0.17 per share. The board accepted the bid of just £0.01 per share or £2.8m for the UK based group plus an immediate loan of £10m to keep Flybe operational and a promise of up to £80m in investment. The consortium would also take on the debts, with Virgin Atlantic owning 30%, Stobart 30% and Cyrus 40%. The sale is expected to be completed by February 22nd.