REG - Esken Limited - Share sale of Star Handling

EskenAnnouncement

15/05/2023 10:30

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RNS Number : 4163Z  Esken Limited  15 May 2023

15 May 2023

ESKEN LIMITED

('Esken' or 'the Group')

 

Share sale of Star Handling Limited

 

Esken, the aviation and renewables group, announces it has exchanged and
completed on the sale of its wholly owned subsidiary Star Handling Limited to
Skytanking UK Ltd, a wholly owned subsidiary of Prime Flight Aviation
Services, Inc, for a maximum cash consideration of £4.8m on a debt free cash
free basis.

 

Under the terms of the agreement, Esken has received £3.46m in cash, with up
to a further £0.38m being payable following agreement of completion accounts.
An additional payment of up to £0.96m (being 20% of the maximum
consideration) is deferred and will be payable subject to the business
achieving forecast customer revenue targets in the 12 months following
completion. The cash consideration will be used toward debt repayment.

 

Star Handling carries out ground handling operations at London Stansted
Airport and Manchester Airport. The sale of these operations is part of
Esken's wider strategy to explore a sale of its Aviation businesses, as
announced in the Group's trading statement on 2 March 2023. Esken's remaining
ground handling operations post disposal will maintain the in-house passenger
handling services at London Southend Airport.

 

The buyer intends to operate the services at Stansted and Manchester under a
new brand name.

 

Additional information

 

The disposal constitutes a Class 2 transaction for Esken for the purposes of
the Financial Conduct Authority's Listing Rules.

 

As at 28 February 2022, Star Handling Limited had gross assets of £5.7
million and net liabilities of £5.4 million. The loss before tax for the year
ended 28 February 2022 was £0.8 million.

 

 

 Esken Limited                              C/O Teneo
 Charlie Geller, Communications Director

 Teneo                                      +44 207 353 4200
 Olivia Peters                              esken@teneo.com (mailto:esken@teneo.com)

 

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