16th Apr 2020 15:23
(Alliance News) - Stobart Group Ltd on Thursday confirmed it is reviewing a possibility to acquire Stobart Air and aircraft leasing business Propius from its administrators Ernst & Young, as it believes that the businesses have a viable future after Covid-19 pandemic.
Shares in Stobart Group were up 7.2% at 67.00 pence each in London on Thursday afternoon.
"The company confirms that it is reviewing all options in relation to the future of Stobart Air and Propius during this unprecedented time including the possibility of acquiring the businesses from the administrators. A range of discussions are ongoing and there is no certainty that any transaction will take place," the aviation, energy, and civil engineering firm said.
Stobart Air and Propius were owned previously by Stobart Group and were sold to Connect Airways, a joint venture formed by Stobart Group, Virgin Atlantic and Cyrus Capital to acquire the now-defunct UK regional airline Flybe. Neither Stobart Air nor Propius are currently in administration.
The company said Stobart Air and Propius have a viable future and that by working with Aer Lingus as franchise partner it can place the business on a secure footing. Aer Lingus is a part of International Consolidated Airlines Group SA.
By Tapan Panchal; [email protected]
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