The group, which includes infrastructure specialist Stobart and investment firm Cyrus Capital Partners, said in a statement that their joint venture Connect Airways will pay just one pence per share under the deal.
"Cyrus, Stobart Group and Virgin Atlantic believe that combining Flybe and Stobart Air in a more integrated commercial cooperation with Virgin Atlantic's long-haul operations will create a fully-fledged UK network carrier under the Virgin Atlantic brand," they said in the statement.
Flybe had put itself up for sale in November after taking a major hit from weak passenger demand, rising fuel costs, a struggling pound and Brexit turmoil.
"We have been affected by all of these factors which have put pressure on short-term financial performance." She added: "By combining to form a larger, stronger, group, we will be better placed to withstand these pressures." Cyrus will own a controlling 40-per cent stake in the new company, while Virgin and Stobart will take 30 per cent each.
The trio has committed to make a 20 million pound bridge loan available to support Flybe's current operations, while another 80 million pound will be provided to the combined group.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)