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Chunky buying
With the possibility of news tomorrow (7 days will be up), I think we'll get a rally this afternoon. If you're interested in HE1 then you won't want to be out overnight.
If the news is good (which I expect) then the sp is anyone's guess!
+52%
After hours RNS imo, deal been done, CGI on board this will fly to the moon
This could pop!!!
Chunky buy.....21k is not punt money. Deal done and this will go ballistic.
Up she goes
LEAK...!!!
Under the radar, but the volume is indicating confidence at this level or a mini-leak
Decent buying
I personally think this is an opportunistic attempted asset grab by CGI. They have tried their luck with "purported" or "technical" breach claims. I would like to see a strongly worded rebuttal from ESKN have now had some time to chew the fat with their legal team. Alternatively if some of the muted CGI proposals are worthy of notification, then lets be hearing them. Do CGI want to be owner, part owner or what ? Also what are TOSCAs intentions / feelings with regards to the future of LSA / ESKN. Very very intriguing and I do not believe for one second all is lost.
MTRO - What they have said completely disagrees with your statement of fact. I have a feeling you have not been speaking to Carlyle group to their intentions which at this stage appear to be good.
For me as I repeatedly say I see this as a win/win at this price, and no one should be selling in my opinion. In fact as the price is so low it is also so volatile which awakens stockbrokers to opportunities and where they make real money if that is what you are interested in. I see this as a wait and see, either way something will happen but the airport will survive, and any contracts that were signed have to be fair and balanced. For old shareholders such as myself anything that comes out of this will be a bonus, or if nothing I can write it off against other profits for the year, but for me I also see this as an interesting punt! DYOR.
I can only assume that SC's valuation of £600m comes from Carlyle's claim of £197m which may be converted into 30% of the business. Mathematically all makes sense. But reality is that the £197m includes full repayment of the capital AND all the interest up to Aug 2028. The 30% was based on the original £120m less the 'ring fenced' £30m that had to go on the BS of LSA Co Ltd. So 30% for £90m. Valuing the airport at around £300m which seems about right.
Carlyle will use the interest between now and August as extra leverage to obtain the rest of the airport for a song. My fear is that the convertible loan agreement is so one sided that they may well pull that off. The Esken board have time and again got into to terrible deals that have then affected the business negatively and crashed the BS and in turn share price. The ridiculous leases on the ATR fleet are a prime example. I live in hope that they can get out of this trap but expectation is less optimistic!
Q: If they can successfully fight off Carlyle, and sell the airport company for say £300m, what would that do to the share price?
Thanks
Interesting late buy reported
It’s game over in my opinion-and it goes all the way back to Tinkler and his merry band
In my opinion the Southend Echo report is stating what Carlyle have said and so if true that they have given an option of acquiring a 30% stake for their loan, which gives a base value of over £600m for the airport which will not have the loan, but instead Carlyle as a major shareholder. Southend airport also has some other very well respected shareholders who would need to be consulted too. However they do have a point in that they could improve the running of the airport and so when we have a share price worth lets face it nothing anyway I see more to be gained by sitting tight and awaiting events as they may not turn out to be as bad as you or anyone else fears. To be honest after selling the BIO MASS the first thing the BOD did was to prop up their own pension rather than at this stage pay more of the loans off, and so Carlyle may have a point. Hopefully someone is going to get off their back side and do something urgently if they wish to maintain their independence although I would imagine we have UK LAW and this might work in ESKEN Favour rather than what the Carlyle USA Lawyers are covering? Who knows -so I can see action which might be a good thing after all if we are to protect the little man. Do we know who is representing Esken.i.e. Clydes, Lovells, Freshfields?
SC - I think you've missed the rather large elephant in the room. The relationship is between Carlyle and London Southend Airport Co. Ltd. In that sense it has nothing to do with Esken. Should Carlyle gain control over that company through their default claim it will mean they've managed to wrestle away ownership rather than pay for it (Beyond the initial loan of course). Should they achieve that then us share holders will get nothing. The are vulture capitalists dressed as venture capitalists. They are 'THE' threat to Esken concluding a decent value sale of the airport - or to be more technical - 'London Southend Airport Company Ltd' who are the current lease holder. Carlyle are trying to gain the airport for a song. They might get away with just their initial 'loan' of £120m. I hope that with Tosca increasing their stake it will serve to protect the only remaining asset of any value of Esken. Unless they are in bed with Carlyle - then it's game over!
Thanks David we all know what was said but I would read the Southend Echo report i wrote below after an interview with Carlyle group. which gives a different slant in that they see benefits by taking away control from the current management control and running the Company themselves. It also gives an idea of how they value the business as their take is a 30% share for the loan plus whatever they also own/buy, existing shareholders might actually be better off long term with Carlyle who also run NY Terminal 1 and so perhaps they can see additional routes to be an advantage too, or something current Management have missed? Interesting one this and they may have a point but nonetheless their reference is to make the most of their own shareholding which Esken have also referred to, but they see and feel they could run things better with them at the wheel which would be better for Essex and presumably long suffering shareholders (them included) worth a read?
Esken, the aviation group, announces that, further to the announcement issued on 26 September 2023 and the circular issued on 6 November 2023 (the "Circular"), on 19 January 2024 its wholly owned subsidiary London Southend Airport Company Limited ("LSA") submitted its defence in relation to a court claim by Carlyle Global Infrastructure Fund ("CGI") alleging a technical breach by LSA with respect to the convertible loan agreement entered into between LSA and CGI. Esken is confident that LSA has a robust position in relation to the CGI claim.
LSA has subsequently received notification that CGI is alleging a number of further breaches by LSA with respect to the convertible loan agreement and that CGI has issued an acceleration notice to LSA, demanding repayment of the loan in the amount of £193.75 million by 16 February 2024. The convertible loan has a maturity date of August 2028. There have been no payment defaults by LSA in relation to the convertible loan agreement and LSA cashflow has been in line with expectations. Esken and LSA are investigating the validity of the alleged breaches in conjunction with advisers.
Esken believes that any such acceleration would have significant adverse implications for LSA, the Group and the Exchangeable Bondholders (as further set out in the Circular) as it would be value destructive for all stakeholders, including CGI itself. Esken is disappointed that CGI has chosen to take this action based on purported technical defaults, as Esken had viewed CGI as a long-term partner in the continued development of the airport. Esken and LSA will be engaging with CGI to resolve the present issues.
LSA is an attractive strategic airport asset in the medium term as aviation markets and the airport continues to recover from the unprecedented effects of the COVID-19 pandemic. The board of Esken believes that there is considerable value in the LSA business and continues to support its liquidity needs in line with the recovery plan. As a result, LSA continues to meet its obligations as they fall due.
As previously announced, Esken is making good progress in addressing the maturity and terms of the Exchangeable Bond and towards the sale of its non-core assets. In addition, Esken continues to focus on seeking a new owner for LSA, with a view to crystallising shareholder value through securing the right long-term partner, which recognises the inherent strategic opportunity and is best placed to support future growth. A successful outcome to the sale process would in any event repay the convertible loan instrument ahead of its maturity date.
Enquiries:
A spokesman for Carlyle said: “Esken is financially distressed and is not in a position to support the airport’s full recovery and growth nor execute an orderly sale of the airport.
“As an experienced investor in and operator of airports around the world Carlyle believes in, and is committed to, the future of Southend Airport and understands its importance to airlines, passengers, employees and the local community.
“We have made numerous proposals to Esken and the airport to secure the airport’s long-term future, and look forward to stable ownership of the airport by an experienced and financially strong entity.”
The loan could be transformed into a 30 per equity stake under certain conditions. Carlyle already operates a number of other global airports including the new terminal one at New York’s JFK.
Value therefore over £600m in all and maybe existing shareholders will see some value after all?
Google haven't bought the airfield, they've bought 52 acres of land that North Weald market was previously held on. Land that sits in prime position right next to the M11 mid way between London and Cambridge. Sorry but this has absolutely no carry across to LSA, Esken don't even own the land to sell at LSA for a start as they're only leaseholders.
Once one starts more massive conglomerate's could follow? North Weald Essex just sold to Google.
;-
https://www.bbc.co.uk/news/uk-england-essex-68078897
Pre pack will be zilch for shareholders too though
What s shambles of a company .
Hi all Carlyle will have to simply wait for their money... Looks like Carlyle have money problems NOT Esken L.t.d. .
I fear your analysis is wrong but I hope you are right-this looks like a pre pack to me as full blown admin will be catastrophic for all