TURBO PROP PORTFOLIO

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 Jeff Chatfield, Executive Chairman

T: [phone]

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

 

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