Business
TURBO-PROP PORTFOLIO
TURBO-PROP PORTFOLIO.
About this update from Avation Plc
[{"type":"text","content":"\n \nRNS Number : 6443Z Avation PLC 16 March 2017 \n\n \nAVATION PLC\n TURBO-PROP PORTFOLIO\nAvation PLC (LSE: AVAP, \"Avation\" or the \"Company\"), the commercial passenger aircraft leasing company, announced on 26 October 2016 that it had received an expression of interest to purchase a portfolio of 22 ATR 72 aircraft. With the assistance of a financial adviser the Company ran a global process to consider the proposal and benchmark alternative bids associated with the potential sale of such a portfolio. \n \nThe Company carefully considered the process for the sale of the portfolio. It was pleased to receive eight offers for all or parts of the portfolio. In reviewing the offers, the Company considered the consequential impact on revenues of the business, the impact to the Company's credit ratings, lessee diversification and concentration, the potential for redeployment of the sale proceeds and other factors.\n \nAfter due and careful consideration, the Company has decided that the optimal commercial outcome is a sale of a smaller portfolio of aircraft. The Company is currently in discussion with a single commercial lessor for a proposed sale of six existing leased ATR 72 aircraft. The Company has executed a conditional letter of intent with the proposed purchaser which has made a $3 million cash deposit, refundable in the event of non-completion. The transaction is expected to close prior to the end of June 2017 with an economic closing date of 7 of April 2017. The transaction is subject to entering into definitive sale documentation and the usual conditions of transactions of this type, including the purchaser novating debt finance and technical inspections.\n \nAssuming the transaction completes, as it remains conditional, the outcome is at a price above the Company book value for these aircraft and releases approximately $31 million in net proceeds to the Company after transaction costs and debt repayment. The Directors will carefully consider the redeployment of proceeds through the acquisition of a diversified portfolio of leased aircraft. \n \nThe Company may pay a dividend in the ordinary course of business associated with the Company's year-end. There is no special dividend under consideration in relation to this transaction.\n \nExecutive Chairman Jeff...