The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Heading up into 36p+ range - any thoughts on where we end the day?
This can only be a good thing for the business and share price as SA was a huge monthly cash drain. The key is that the transaction to dispose of SA is expected to result in a loss on disposal of approximately £8m after professional fees. The disposal of Stobart Air (UK) Limited, which owns Carlisle Lake District Airport, for proceeds of £15m, is expected to generate a profit on disposal in excess of £10m.
ESKEN, the owner of Aer Lingus Regional operator Stobart Air, has confirmed it's in advanced discussions to sell the Dublin-based carrier to Isle of Man-based Ettyl.
The Irish Independent revealed last month that Ettyl had entered the race to acquire Stobart Air.
Esken, previously Stobart Group, committed last year to having sold Stobart Air by the end of February this year. A sale has not yet been completed.
Esken said in a statement today that it’s also in talks with Ettyl to sell Carlisle Airport.
“There can be no certainty that an agreement will be reached or that the transaction will conclude as it remains subject to final contract matters and approvals,” said Esken.
Ettyl is headed by Jason Scales, who founded the virtual airline last year. He also heads a shared office centre called The Hubb on the Isle of Man. He is listed in company documents as being the sole shareholder in Ettyl when it was founded this time last year.
It’s believed that if it was successful in its bid to buy Stobart Air, Ettyl would retain the carrier’s headquarters in Dublin and its key management team including managing director Andy Jolly.
It’s thought that Ettyl could be prepared to inject as much as €25m into Stobart Air.
It’s not known at this stage where Ettyl's financing will be sourced.
A final say on the Stobart Air purchaser will effectively rest with Aer Lingus given that the existing Aer Lingus Regional contract operated by Stobart Air does not expire until the end of 2022.
Last November, businessman Conor McCarthy’s Emerald Airlines was named the preferred bidder to operate the Aer Lingus Regional contract when the Stobart Air contract expires. Mr McCarthy also owns aircraft maintenance firm Dublin Aerospace.
It’s believed that if Ettyl is successful in its bid to buy Stobart Air that it plans to use about three aircraft from the carrier’s fleet to operate domestic routes within Britain from the summer in order to generate additional cashflow.
Stobart Air currently has a fleet of 13 turboprop ATR aircraft, but is due to the impact of the pandemic is operating a limited schedule that includes public service obligation routes to Dublin from Donegal and Kerry, as well as some services out of Belfast.
Esken has liabilities of about $100m attached to Stobart Air via a connected leasing firm called Propius.
Interesting that they put out the RNS today - adds a bit more substance to Ettyl buying Esken's shareholding in Stobart Air and Carlisle Airport - once formally announced can only help the SP...wouldn't be surprised to see something this month....
"We are optimistic about the summer," said Friedrich Joussen, who runs TUI.
The firm - which owns a fleet of aircraft, cruise ships and a chain of travel agencies - said bookings in March alone had hit 2.8 million.
As a result, it expected to operate up to 75% of its normal schedule for the summer season.
"We are still confident that we will have a decent summer," said Mr Joussen, pointing to coronavirus vaccination programmes in the UK, US and Europe.
SVP clearly on a mission - be interesting to see how their interest in Esken unfolds......
Lots of positive sentiment in the Sunday papers around the hospitality sector re-opening tomorrow. The good weather forecast for the next 2 weeks coupled with the recent Berenberg upgrade bodes well for an eventful start to the week.
The Group expects to reopen around 70% (c.700) of its managed and franchised pubs in England with outdoor spaces on or around 12 April and, subject to final regulatory confirmation, the majority of our Scottish and Welsh pubs on 26 April.
Boris stated yesterday that he is looking to make summer holidays as "easy as possible" by introducing rapid lateral flow tests for travel rather than PCR tests. This will result in it being far cheaper and easier to travel - if this approach is adopted it is a positive development for the likes of Esken https://www.google.com/amp/s/amp.lbc.co.uk/news/covid-lateral-flow-tests-cheaper-holidays/
Am hovering over the "Buy" button as inclined to have a punt for a quick 10% return but something doesn't feel quite right as would have expected this to be in the 290's not languishing around the 280p mark - clearly the market does not share my optimism that a deal will be done next week (or possibly later in April). Be an interesting week either way next week.
A step in the right direction https://www.google.com/amp/s/www.thesun.co.uk/money/14382958/marstons-pubs-april-open/amp/
Has the feel of some news on the way (will have to wait to see if it is good or bad!)
TDR has until March 8 to makes a firm offer at 305p or announce its intention not to do so.
Regardless of whether the 305 offer matrialises, got to be worth a punt at these prices. May just be a play to drive down the price to make the 305 offer seem more attractive. We will find out very shortly.....
Movement on Stobart sale:
Aviation executive Ian Woodley is understood to be engaged in talks to buy Aer Lingus Regional operator Stobart Air.
Mr Woodley was previously involved in regional carrier BMI. He was an investor in the consortium that acquired the operator from Aer Lingus owner IAG in 2012 and served as chairman until 2014.
The Irish Independent understands that Andy Jolly, the managing director of Dublin-based Stobart Air, is also involved in the acquisition talks alongside Mr Woodley.
Surprised to see this drop back to 275. Anyone else tempted to buy back in for a quick 10.5% win once (or if......) the offer gets rubber stamped? I am almost tempted but not quite - if it drops to sub 268p will have a small flutter on the basis that even if the deal doesn't proceed, ARW are still well positioned to make the most of the current market.