SymbolPriceChangeEJETF.PK5.650.00RUBNF.PK0.270.00{

(Adds details)

LONDON, DEC 5 (Reuters) – EasyJet (Other OTC: EJETF.PK – news) founder
Stelios Haji-Ioannou’s easyGroup said it had entered into an
agreement with British investment firm Rubicon (Other OTC: RUBNF.PK – news) which will see
the pair study the feasibility of launching a low-cost airline
serving the African market.

Under the proposal easyGroup will be issued shares in
Rubicon representing 5 percent of Rubicon and will have the
option to take a further 10 percent.

“It is proposed that easyGroup will become a shareholder in
Rubicon and will use the services of Stelios and easyGroup’s
experienced aviation management team to provide general
strategic, management and branding advice on the feasibility of
implementing a low cost, point-to-point, no frills, all jet
aircraft business model for Africa,” Robert Burnham, the
chairman of Rubicon said in a statement.

The proposal is conditional on the resolutions being
approved at Rubicon’s general meeting on Dec. 13.

Earlier this year Stelios unveiled plans to set up another
airline and call it fastjet, stoking tensions between easyJet
management and Stelios, whose family is the largest easyJet
shareholder with 38 percent.

Under the proposal Rubicon said it would hire a team of up
to five aviation executives, led by Stelios, to provide branding
advice which, if accepted, would lead to an agreement under
which easyGroup will provide Rubicon with exclusive rights to
use the fastjet.com brand for an initial period of twelve
months.

If certain conditions are met, including the delivery of
aircraft to easyGroup, Rubicon’s rights to the fastjet.com brand
would continue on a perpetual basis.

(Reporting by Rhys Jones; editing by Sarah Young)

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