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FastJet's slow-burn story

FastJet has won backing from the City, but decent returns are probably years away
April 24, 2014

Investing in Africa is a risky business. We found that out when we tipped FastJet (FJET), sub-Saharan Africa's first low-cost airline, back in 2012. Fast-growing economies, an expanding middle class and terrible roads looked like a recipe for success. But progress has been slower than expected, held up by legal wrangling, legacy issues and questionable accounting. Continuous fundraising has had a dilutive effect on ordinary shareholders, too. Now they also have an opportunity to participate in the latest cash call. Should they?

IC TIP: Sell at 1.6p

Ed Winter, chief executive and stand-in chairman for the past 11 months, is prepared to put his money where his mouth is. Mr Winter, founder of budget carrier Go and former chief operating officer of easyJet (EZJ), has already subscribed for 31.25m shares as part of an £11m share placing at 1.6p, heavily backed by both the City and £1m from easyJet's Stelios Haji-Iannou. An open offer at the same price is looking to raise £4m.

Buys       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
Abcam ♥Dr Jonathan Milner (ce)10 Apr 14259,000381.95989,25127,362,37513.654
Abcam Mike Redmond17 Apr 1410,15037938,469102,2740.040
Abcam ♥Mike Redmond17 Apr 143,57537913,54988,7250.040
Baobab Resources Jeremy Dowler (ch)11 Apr 14100,00010.9810,9838,840,1692.582
China Growth Opportunities Nicholas Brooke 14 Apr 1413,251,9200.566,26013,251,92018.931
Elementis Andrew Duff15 Apr 1450,000279.53139,76550,0000.011
FastJet *Ed Winter (ce & ch)15 Apr 1431,250,0001.6500,00031,300,0002.242
FastJet *Angus Saunders (fd)15 Apr 146,250,0001.6100,0006,250,0000.448
Frontier Developments David Gammon (ch)16 Apr 1425,00026065,000254,7200.813
Global Energy Development David Quint15 Apr 1415,00068.510,275135,0000.374
Greenko  John Rennocks14 Apr 147,396167.512,38844,5210.030
Haydale Graphene Industries John Knowles (ch)16 Apr 1413,00018524,05072,4540.644
Henderson Global Trust RJ Hills10 Apr 1410,00035235,20025,0000.063
HSBC Holdings Rachel Lomax10 Apr 148,000621.549,7208,000<0.001
JPMorgan Mid Cap Investment Trust RNL Huntingford15 Apr 141,50080012,0001,5000.006
Lookers Nigel McMinn11 Apr 1475,000149111,750110,0000.028
Micro Focus International Kevin Loosemore (ch)16 Apr 147,549804.3460,720736,2890.531
Micro Focus International ♥Kevin Loosemore (ch)16 Apr 143,630805.7329,248739,9190.533
Monitise Peter Ayliffe (ch)11 Apr 14250,00057.13142,825250,0000.014
Namibian Resources *Brian Moritz (ch)15 Apr 145,760,0001.2572,00018,040,33024.571
Nasstar Nigel Redwood (ce)15 Apr 14309,7356.7520,90710,475,4302.962
Nasstar David Redwood15 Apr 14309,7356.7520,90710,112,1932.859
New Europe Property Investments JN Zidel14 Apr 146,615519.9534,3952,220,8170.996
New Europe Property Investments ♥A Morar14 Apr 144,66150523,5381,271,2920.570
Polar Capital Technology Trust P Hames15 Apr 144,000436.9317,47710,0000.008
Real Estate Investors *WP Wyatt14 Apr 1450,00049.524,75098,5000.088
Real Estate Investors *Paul Bassi (ce)14 Apr 14150,00049.574,2509,200,0008.257
Real Estate Investors *John Crabtree (ch)14 Apr 1450,00049.524,750138,0000.124
Real Estate Investors *MHP Daly (fd & cs)14 Apr 14150,00049.574,250885,0000.794
RM2 International SAJan Dekker14 Apr 14176,00070123,2002,300,0000.720
Science in Sport *Dawson Buck15 Apr 14111,1124550,000418,6771.700
Science in Sport *Stephen Moon (ce)15 Apr 14222,22345100,000421,3301.711
Sinclair IS Pharma Stuart Swanson16 Apr 1435,00030.510,6754,232,8540.973
St Modwen Properties Lesley James15 Apr 1410,000366.436,64020,0000.009
Stock Spirits  Andrew Cripps10 Apr 1420,00028657,20020,0000.010
Tungsten Corporation Edmund Truell (ce)14 Apr 145,000218.2510,91314,824,73914.825
Tungsten Corporation ♥Edmund Truell (ce)11 Apr 1457,055217123,80914,819,73914.820
Xchanging David Bauernfeind (cfo)11 Apr 1450,000162.681,300400,0000.164

Sells       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
Craneware Neil Heywood10 Apr 149,000541.548,73596,3560.357
Frontier Developments David Braben (ce)16 Apr 141,600,0002504,000,00015,894,38050.731
Good Energy  Garry Peagam (fd)14 Apr 1442,500287.85122,335158,5001.081
Marechale Capital Jon Pither10 Apr 14681,818213,6364,050,5027.022
Mattioli Woods Mark Smith15 Apr 145,43444624,23613,4250.067
Robert Walters Robert Walters (ce)11 Apr 14215,187330710,1172,235,6182.904
Robert Walters Giles Daubeney (coo)11 Apr 14215,186330710,1141,582,3332.055
Signet Jewelers Michael Barnes (ce)12 Apr 1416,9986,0641,030,824223,9840.279
Signet Jewelers Michael Barnes (ce)16 Apr 1449,1956,0552,978,894174,7890.218
*placing/tender/open offer ♥ spouse/connected party