Stobart Air owner Esken to sell stake in Southend Airport for £120m
The owner of newly collapsed Stobart Air has confirmed that it is close to agreeing the £120m sale of a 30 per cent stake in London Southend airport to private equity group Carlyle.
In a statement issued this afternoon after reports that a deal was in the offing, Esken said that it was in the “final stages” of agreeing the transaction.
“Under the proposed terms of the partnership, Carlyle would provide £120m of funding net of Carlyle costs via a loan (convertible at Carlyle’s option into an equity stake of 29.99 per cent in LSA), which would release £100m of liquidity into the rest of the group”, it said.
The news comes just days after Stobart Air went into administration, putting hundreds of jobs at risk.
The firm, which runs services under the Aer Lingus brand, was due to be bought by Isle of Man firm Ettyl, but funding for the deal fell through.
Before the pandemic grounded much of its fleet of 13 turboprop planes, Stobart operated around 900 flights per week across 30 routes in Ireland, the United Kingdom and western Europe.
Despite confirming the Carlyle deal, which will provide it with a much needed cash boost, shares in Esken fell 6.5 per cent today.