This week: Lifeline exceeds expectations, Symphony seeks to woo US investors, and a Triple whammy for SeaEnergy
Avation (AVAP.PL 35.5p/£9.31m)
Aircraft rental and leasing company last week announced that it had entered into a conditional letter of intent to purchase one Airbus A320-200. The aircraft is currently in service in the UK and is at this time is owned by an international aircraft leasing company. Avation is an interesting PLUS listed company. Through its subsidiaries, it owns commercial passenger jet aircraft which are leased to various airlines in Europe, the US and Australia. Avation is also a 51 per cent holder in PLUS listed Capital Lease Aviation PLC, and is also a supplier and financier of broadcasting equipment to radio and television broadcasters and offers a procurement service for both airlines and broadcasters to purchase such consumables. It also owns an intellectual property portfolio of innovative digital media broadcasting technology.
With respect to this latest news, Avation has paid an initial deposit for the aircraft of $150,000. The total cost for the aircraft to enter service is approximately $11,000,000 with a base purchase price consideration of $8,600,000. Avation intends to pay for the aircraft from its own group cash flows and in principle has secured interest free vendor finance in respect of US$7,800,000 over a period of three years. The aircraft is being acquired for leasing to Skywest Airlines Limited who have commenced technical and commercial due diligence on the aircraft. Skywest leases planes from Avation and the two companies have traditionally and historically being linked together. On the face of it, it looks like Avation has the opportunity to acquire this aircraft on attractive terms to broaden its fleet, without paying a sky high price!
Beacon Hill Resources (BHR 0.365p/£21.32m)
This AIM listed resource company also had a few announcements last week and started with a trading update detailing the rapid progress made by the Group since its re-admission to AIM on 15 October 2009, following the acquisition of Tasmania Magnesite NL and fundraisings totaling £1.75m. The share price has held steady since its readmission. The first key steps in the development of the Arthur's River magnesite project in NW Tasmania is underway, including the submission of an application for a Mining Lease and discussions with potential joint venture partners with regard to the construction of a calcination plant. Beacon Hill also stated…
