Flybe Group Plc,said majority shareholder Rosedale Aviation Holdings has sold its entire 48.1 percent stake in the airline to institutional investors.
Flybe shares fell as much as 15 percent in early trade, making the embattled carrier's stock one of the biggest percentage losers on the London Stock Exchange on Wednesday morning.
The company's free float is now expected to increase to 85 percent, Flybe said in a statement on Wednesday.
The stake was sold through Liberum Capital, which said the buyers were UK institutions but declined to provide any additional details. At Tuesday's closing, Rosedale's stake was valued at about 38 million pounds ($60.52 million).
Chief Executive Saad Hammad indicated that some existing investors had increased their holding in Flybe as part of this transaction.
Flybe's second largest shareholder is British Airways owner International Consolidated Airlines Group , with a 15 percent stake as on June 14. Flybe's other shareholders include billionaire investor George Soros and recently departed chairman Jim French.
Like many other European airlines, Flybe has responded to soaring fuel costs, higher airport charges and slower spending on air travel by shutting down unprofitable routes and limiting its spending.
Source: Reuters
