Budget carrier Fastjet said South African carrier Solenta would become a 28 percent shareholder in the company and that it would also raise at least $28.8 million through a share placement.
The airline said on Thursday it would buy a special purpose vehicle (SPV) held within the Solenta group by issuing nearly 95.6 million shares.
The SPV has three wet-leased aircraft and the supply of other services over the next five years.
The share issue is priced at 16.3 pence each, representing a nearly 2 percent discount to Fastjet’s Wednesday close of 16.625 pence, the company said.
Fastjet said it would use the proceeds for working capital purposes, allowing it to implement new revenue generating measures and reach cash flow break-even by the fourth quarter of 2017.
The company said Solenta would have the right to nominate two members to its board.