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Hangar 8 To Buy Gama Aviation In Reverse Takeover, Issue Shares (ALLISS)

Mon, 8th Dec 2014 13:23


LONDON (Alliance News) - Hangar 8 PLC on Monday said it is to acquire Gama Aviation Holdings (Jersey) Ltd in a reverse takeover and said it will issue shares in order to cancel debt and provide working capital to the new business.

Hangar said it will acquire Gama via the issue of 27.3 million shares, valuing the deal at GBP82.3 million based on Monday's opening price of Hangar 8 shares of 301 pence.

The deal is being structured as a reverse takeover, and the newly-formed combined company will be called Gama Aviation PLC. It will have a market capitalisation of around GBP120.4 million, Hangar 8 said.

Hangar said it also will issue 6.1 million shares at 280 pence per share to raise GBP17.2 million, to be used to cancel net debt and provide additional working capital for the new business. At the same issue price, it also will issue 2.1 million shares to pay vendors.

"Hangar8 has achieved much in its short history but, in our highly regulated industry, success at all levels is now entirely driven by scale. It is no longer sufficient to manage a relatively small number of aircraft across a few countries," said Hangar8 Chief Executive Dustin Dryden.

"This exciting combination of Hangar8 and Gama Aviation, to form Gama Aviation PLC in one step, delivers that, and moreover, does so in a way that organic growth and a series of smaller consolidations would perhaps take a decade or more to replicate, placing the new enlarged group firmly on the podium of global private aviation companies," Dryden added.

Shares in Hangar 8 were trading down 0.3% at 300.00 pence on Monday.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

Copyright 2014 Alliance News Limited. All Rights Reserved.

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