Aviation and energy group Stobart Group Ltd (STOB.L) Monday said it has reached agreement to acquire Stobart Air and Propius for a consideration of up to 8.55 million pounds.
The deal includes an initial consideration of 300,000 pounds payable in cash at completion, a deferred consideration of 2 million pounds to be paid no later than December 15, 2020, and a contingent deferred consideration up to a maximum of 6.25 million pounds, among others.
The deal has been reached with EY, the administrators of Connect Airways Limited.
Propius is an aircraft leasing business that leases its eight ATR aircraft to Stobart Air, which operates regional flights under a franchise agreement for Aer Lingus. Stobart Group owned these businesses earlier, and sold in February 2019 to Connect, its joint venture with Virgin Atlantic and Cyrus Capital Partners formed to acquire Flybe.
Stobart Group noted that the Stobart Air and Propius businesses had continued to operate independently within Connect and were therefore unaffected by the Flybe administration.
The transaction, which has now been completed, will result in Stobart Group acquiring a 40 percent voting interest and 75 percent economic interest in the ultimate holding company of both Stobart Air and Propius, known as Everdeal 2019 Limited.
Stobart Group is also acquiring a 15 percent shareholding in the company that holds the remaining 60 percent voting interest and 25 percent economic interest in such holding company, with the Stobart Air Employee Benefit Trust retaining the balance.
This will provide the Company with an effective indirect economic interest of 78.75 percent in Stobart Air and Propius.
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