Esken Limited LSA and Carlyle Global Infrastructure Fund (5971N)
September 26 2023 - 2:00AM
UK Regulatory
TIDMESKN
RNS Number : 5971N
Esken Limited
26 September 2023
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
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END
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