26 Sep 2023 07:00
This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.
26 September 2023
ESKEN LIMITED
('Esken' or the 'Company')
LSA and Carlyle Global Infrastructure Fund
Esken, the Aviation and Renewables group, has received notification from Carlyle Global Infrastructure Fund (CGI) as set out below in relation to its wholly owned subsidiary London Southend Airport Company Limited (LSA).
By way of background, in July 2021, LSA and CGI entered into a 7 year convertible loan instrument, with the loan being drawn down in August 2021. Following the previously announced strategic review of its operating businesses, Esken is pursuing the sale of LSA, with a view to finding the right long term strategic owner of the airport. This process, which is currently underway, would, if successful, see an early redemption of the CGI convertible loan and in addition, the Board believes, would realise value for Esken shareholders. As stated in the trading update issued on 30 August 2023, the Board has been encouraged by the level of initial interest received in relation to the airport. The return to pre-pandemic demand throughout the travel sector means there is now positive traction in performance, with the outlook for Summer 2024 travel looking strongly positive.
Esken has continued to provide liquidity support to LSA and has given a commitment to do so through to its sale. In addition, the Board of Esken is of the view that the value of LSA is above the redemption value of the CGI loan and that it is in the interests of both CGI and Esken shareholders to achieve a successful sale of LSA on a managed basis.
Esken has received notification that documents filed by CGI in the High Court have been served on LSA, claiming certain technical breaches by LSA with respect to the convertible loan agreement. Esken does not agree with CGI's claimed interpretation of the convertible loan agreement and will support LSA in defending the action vigorously. In addition, Esken will continue with its sale process to find the right long term owner for the airport.
Enquiries:
Esken Limited c/o Teneo
Adam Davidson, General Counsel & Company Secretary
Teneo
Olivia Peters / Giles Kendrick
+44 207 353 4200
esken@teneo.com