Esken Limited, an aviation and renewable energy group, has announced the conditional disposal of its wholly owned subsidiary, Esken Renewables Limited, to Pioneer Balmoral UK Limited. The consideration for the disposal is £77.6 million, plus an expected Intercompany Loan Reimbursement of £6.9 million, resulting in an equity value of £84.5 million. The net proceeds of the disposal, totaling £78.5 million, will be used to repay the company's committed funding and associated costs, contribute to the group's defined benefit pension scheme, and provide additional working capital. The completion of the disposal is subject to various conditions and is expected to be completed in early December 2023.
The sale of Esken Renewables will provide Esken with increased financial stability to support the managed sale of London Southend Airport. The company has received initial interest from various parties for the sale of the airport. David Shearer, Executive Chairman of Esken, commented that the sale of the renewables business is a positive outcome in a challenging market and that the focus will now turn to addressing the maturity and terms of the Exchangeable Bond and the sale of London Southend Airport.
In addition to the proposed disposal, Esken intends to transfer its listing from the Premium Listing segment to the Standard Listing segment of the London Stock Exchange. The company also plans to introduce a new Executive Remuneration Scheme, subject to shareholder approval, to facilitate certain incentive entitlements for its Executive Directors. The disposal, proposed transfer, and implementation of the Executive Remuneration Scheme are all subject to approval by shareholders at the General Meeting. A circular convening the General Meeting will be published and notified to shareholders shortly.