Stobart Group Limited Aircraft Purchase (4904M)
29 July 2017 - 1:42AM
UK Regulatory
TIDMSTOB
RNS Number : 4904M
Stobart Group Limited
28 July 2017
28 July 2017
Stobart Group Limited ("Stobart" or the "Group")
Aircraft Purchase
Stobart Group is pleased to announce that its aircraft leasing
business, Propius Limited ("Propius"), has signed an agreement with
a Special Purpose Company managed by GOAL German Operating Aircraft
Leasing GmbH & Co. KG to purchase three Embraer E195 jet
aircraft, which are currently on a lease agreement with Flybe
running to H2 2018.
Propius will purchase the aircraft from GOAL
Verwaltungsgesellschaft mbH & Co. Projekt Nr. 36 KG for $56.0
million before deductions of certain amounts including maintenance
reserves and security deposits. The aircraft will continue to be
leased to Flybe until the second half of 2018 with an estimated
total lease income up to that date of $9.2 million. The
consideration is being funded from the proceeds of the aircraft
sale and lease back transaction which was announced on 5 April
2017.
The purchase of these aircraft will allow Stobart Group's
Aviation Division to immediately enhance its asset base for a
relatively low capital cost. Over the longer term, the aircraft can
also be used to support the growth of Stobart Group's Dublin-based
regional airline, Stobart Air, which currently operates a fleet of
17 ATR turbo prop aircraft, and aims to operate 20 aircraft in
2018.
Completion is scheduled by 31 July 2017.
Warwick Brady, Group CEO of Stobart commented "Aviation is a
core part of the Group's strategy to grow the overall business. The
investment into the Embraer 195 aircraft will support the growth
plans in our regional airline and aircraft leasing businesses, and
adds further flexibility as we continue to grow our regional
airline, develop our valuable long-term franchise with Aer Lingus,
support Flybe in the Isle of Man and grow passenger numbers at
London Southend Airport."
Enquiries:
Redleaf Communications +44 20 7382 4730
Charlie Geller Stobart@redleafpr.com
Elise Palmer
Sam Modlin
This information is provided by RNS
The company news service from the London Stock Exchange
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