Stobart’s airport swoop
STOBART Group is to acquire Southend airport in London for up to £21m. It plans to use the airport as a niche air freight destination, with passenger airlines helping drive freight.
The Warrington-based logistics company said the acquisition from Regional Airports Limited is in line with its “multi-modal” strategy, with air becoming the final component alongside road, rail and sea.
It added that Southend airport would complement its option to acquire Carlisle Airport, which it holds until January 2009.
The group said the airport has the potential develop a major regional airport serving London and the broader South East and added that it would look to extend the runway to meet demand for European business and leisure travel.
In the year to the end of March 2008, Southend airport had a total income of £6.9m, a pro-forma operating profit of £0.8m and assets of £42m.
It has been included in the Thames Gateway redevelopment plan, which includes the new DP World London Gateway Port, opening nearby in 2010.
Andrew Tinkler, chief executive of Stobart, said: “At one stroke, we have found our southern base and greatly enhanced our position as a leading point-to-point service provider for customers in the UK and Europe who require fast and efficient services by air as part of their logistics solutions.
“Stobart has the necessary skills, including rail infrastructure and civil engineering expertise, to make a positive impact on the Airport’s development plans. We have already started talking to a number of airlines to investigate opportunities for new passenger services.”
Stobart is placing 15.7 million ordinary shares at 73 pence each to raise £11.5m to help pay for the deal.
An initial £16m will be satisfied from the £10m made from the share placing (after expenses) along with a £6m vendor loan note. The additional deferred £5m, payable on the achievement of certain aspects of the airport’s development, will bne paid for from existing group facilities.
Law firm Halliwells acted for Stobart on the deal, led by partner Jonathan Brown and solicitor Matt Noon.
