Avation reveals bid for ATR portfolio

Leasing company Avation has received an expression of interest for the purchase of its current portfolio of ATR turboprop aircraft.

The company says it will “evaluate the expression of interest in due course” and has stressed that discussions are at an early stage with no conclusions drawn.

Avation has 24 ATR 72s with two currently under finance leases; the size of the portfolio covered in the expression of interest is therefore 22 aircraft. The portfolio comprises relatively new ATR 72s with a remaining lease term of approximately 6.3 years. These are leased to a number or airlines in Europe, Asia and Australia.

The company’s executive chairman, Jeff Chatfield, commened, “As a matter of policy, the company is willing to sell aircraft and reinvest the proceeds in order to fund the equity for purchases of new aircraft. If this proposed transaction is to progress, the net proceeds would need to deliver shareholders significant value above book value. We would seek shareholder approval for any portfolio transaction of this scale. No decision on a sale has been made. However, the directors are willing to consider a proposal aligned with attractive shareholder returns for this portfolio, a portfolio which currently generates strong cash yields for the company.”

Avation says it will make further announcements in due course as and when there are any relevant developments.

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