(Alliance News) - Gama Aviation PLC on Friday confirmed the sale of its US maintenance, repair and operations business Jet East for USD131 million.
Shares in Gama were up 8.6% to 95.00 pence each in London on Friday afternoon. Over the last 12 months, the stock has jumped 47%.
In October, the Farnborough, England-based aviation services company announced the sale of Jet East to West Star Aviation Enterprises LLC.
On Friday, Gama shareholders approved the sale.
It also said that it is continuing to review the current and future capital requirements of the company.
Gama said it expects to returns a "substantial" proportion of the proceeds to shareholders. "Further details of the amount, proposed timing and method of such return will be announced in due course," it noted.
Chief Executive Marwan Khalek said: "We are delighted to announce the completion of the sale of Jet East to West Star Aviation. It delivers excellent value for Gama Aviation, realising substantial funds to return to our shareholders, strengthen our balance sheet and invest in our Special Mission, Technology & Outsourcing and Business Aviation strategic business units."
By Sophie Rose, Alliance News senior reporter
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Gama Aviation (GMAA)