Stobart 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.

(From:- http://www.lorryspotting.com/news.asp )

That's a big move forward in the current financial minefield.

Also this morning, Southend Airport's second biggest customer (after ATC Lasham who maintain airliners up to 757s there) went into administration! Flightline went bust.