Esken Limited, an aviation and renewables group, has received notification from Carlyle Global Infrastructure Fund (CGI) regarding its wholly owned subsidiary, London Southend Airport Company Limited (LSA). Esken is currently pursuing the sale of LSA as part of its strategic review of operating businesses. The company aims to find the right long-term strategic owner for the airport, which would result in the early redemption of the CGI convertible loan and create value for Esken shareholders. The Board of Esken has expressed confidence in the sale process, citing the positive traction in performance and the strong outlook for Summer 2024 travel.
Esken has been providing liquidity support to LSA and has committed to doing so until the sale is completed. The company believes that the value of LSA exceeds the redemption value of the CGI loan and that a successful sale would be in the interests of both CGI and Esken shareholders. However, Esken has received notification that CGI has filed documents in the High Court, claiming certain technical breaches by LSA with respect to the convertible loan agreement. Esken disagrees with CGI's interpretation of the agreement and will vigorously support LSA in defending against the action. Despite this legal challenge, Esken remains committed to the sale process and finding the right long-term owner for LSA.
For further information, interested parties can contact Esken Limited through Teneo, the company's communications advisor.