Avation PLC TURBO PROP PORTFOLIO (5028N)
26 October 2016 - 7:31PM
UK Regulatory
TIDMAVAP
RNS Number : 5028N
Avation PLC
26 October 2016
AVATION PLC
("Avation" or "the Company")
TURBO PROP PORTFOLIO
Avation PLC (LSE: AVAP), the commercial passenger aircraft
leasing company advises that it has received an expression of
interest for the purchase of its current portfolio of ATR turbo
prop aircraft. The company will evaluate the expression of interest
in due course and emphasises that discussions are at an early stage
with no decision having been made. Accordingly, there is no
certainty that any definitive agreement will be entered into and
there is no certainty that any transaction will materialise from
the current discussions.
The Company has 24 ATR72 aircraft with two currently under
finance leases; the size of the portfolio the subject of the
expression of interest is 22 aircraft. The portfolio comprises
relatively new ATR72 aircraft with a remaining lease term of
approximately 6.3 years and are leased to a number or airlines in
Europe, Asia and Australia.
The Company's Executive Chairman, Jeff Chatfield, said: "As a
matter of policy, the Company is willing to sell aircraft and
reinvest the proceeds in order to fund the equity for purchases of
new aircraft. If this proposed transaction is to progress, the net
proceeds would need to deliver shareholders significant value above
book value. We would seek shareholder approval for any portfolio
transaction of this scale. No decision on a sale has been made.
However, the directors are willing to consider a proposal aligned
with attractive shareholder returns for this portfolio, a portfolio
which currently generates strong cash yields for the Company."
The Company will make further announcements in due course as and
when there are any relevant developments.
-ENDS-
More information on Avation can be seen at: www.avation.net
Enquiries:
Avation T: +65 6252
Jeff Chatfield, Executive 2077
Chairman
Notes to Editors:
Avation PLC is a commercial passenger aircraft leasing company
owning and managing a fleet of jet and turbo prop aircraft which it
leases to airlines across the world. The Company's customers
include VietJet Air, Thomas Cook, Air France, Condor, Air Berlin,
Virgin Australia, Fiji Airways and UNI Air.
www.avation.net
This information is provided by RNS
The company news service from the London Stock Exchange
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