Stobart Group acquire Southend airport
Stobart announces that it has conditionally agreed to acquire London Southend Airport
(‘Southend Airport’) from Regional Airports Limited (‘RAL’) for a maximum consideration of
£21.0 million, of which £5.0 million will be due on achievement of certain aspects of the
airport’s development (the ‘Acquisition’). Stobart also announces an associated conditional
placing of £11.5 million. The initial consideration of £16.0 million will be satisfied from the
placing proceeds and a vendor loan note of £6.0 million. The Acquisition is conditional upon
Admission of the Consideration shares.
The Board of Stobart believes that the acquisition of Southend Airport is in line with its multimodalstrategy, air becoming the final component alongside road, rail and sea. The Board
expects a period of consolidation and is confident that the Group can achieve synergies from
integrating air with its existing operations.This view is reinforced by the fact that Southend has been specifically included in the
Thames Gateway blueprint plan, projected to become one of the UK’s fastest growing
development regions, and which includes the new DP World London Gateway Port, opening
nearby in 2010.
Stobart plans to work with operators to develop passenger services across UK and European
destinations. Stobart believes that Southend Airport has the potential to become an
established niche air freight destination, with passenger airlines helping drive freight
opportunities, specifically for high-value goods. It also complements Stobart’s option on
Carlisle Airport.
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Photo is courtesy of and copyrighted to Craig Dalrymple
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