£200m shares issue satisfies Connect Airways investor

Esken, the Carlisle-based aviation and energy infrastructure group previously known as Stobart, has agreed to issue 6,000,000 ordinary shares of 10 pence each to DLP Holdings sarl, a Luxembourg company wholly-owned by funds managed by New York-based Cyrus Capital Partners.

Friday’s closing price saw Esken’s shares trading at £36 per share.

The shares will be issued in satisfaction of a put option between Esken and Cyrus arising out of their previous interest in Connect Airways.

Connect Airways was formed from the struggling Flybe airline in 2019, which eventually collapsed a year later. Stobart was a partner in the venture.

Applications have been made for the shares to be admitted to the premium segment of the official list of the Financial Conduct Authority and to trading on the London Stock Exchange’s main market for listed securities.

It is expected that admission will become effective and dealings in the shares will start on May 7.

Following this share issue, the total issued share capital of the company will consist of 630,926,123 ordinary shares of 10 pence each and 1,000 non-voting deferred shares of 0.1 pence each.