8th Jan 2016 08:09
LONDON (Alliance News) - Aviation services company Gama Aviation PLC on Friday said it has struck a conditional deal to acquire business aviation services provider Aviation Beauport Ltd.
The acquisition will comprise a cash consideration of GBP2.6 million and the issue of 1.0 million Gama shares, which would give the deal a total value of GBP5.3 million based on Gama's closing price on Thursday of 272.5 pence.
Gama shares were up 0.1% to 272.7499p early Friday.
Gama said Jersey-based Aviation Beauport offers aircraft charter, FBO services and has four aircraft currently under management. It said the deal will boost its presence in Jersey, a potential growth opportunity within a generally mature European market, and will strengthen its business aviation services.
The agreement is conditional on securing approval from authorities in Jersey, which Gama expects to be secured in February.
"This earnings enhancing bolt on acquisition is an excellent strategic fit for the Group and allows us to extend our product offering in both our European Air and Ground operations. It will also provide unique access and opportunity to be of service to the large number of high net worth individuals who reside in Jersey thereby providing potential growth in customers," said Gama Chief Executive Marwan Khalek.
Gama also said it has secured a GBP10.0 million credit facility from Royal Bank of Scotland, which will be used to fund the cash consideration of the Aviation Beauport acquisition.
By Sam Unsted; [email protected]; @SamUAtAlliance
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