(Alliance News) - BBA Aviation PLC on Friday said it will return USD835 million to shareholders following the disposal of the company's aerospace parts and services unit Ontic for USD1.37 billion, while also renaming itself.
BBA Aviation shares were trading 1.4% higher in London at 307.80 pence in morning trade.
The aviation services company said the disposal of Ontic to CVC Fund Vll has met all regulatory and financial conditions and therefore has now been completed.
BBA Aviation received USD1.32 billion in net proceeds from Ontic sale, following price adjustments. Out of these proceeds, BBA intends to repay USD250 million of bank debt and contribute USD39 million to its pension plan, the BBA Income & Protection Plan.
After the payments toward bank debt and pension funding, BBA will return USD835 million, or 80.71 pence per share, to shareholders, which is near to the top end of the previously guided range when the Ontic sale was announced at July-end.
BBA Aviation said as a result of the special payout it will undertake a share consolidation to maintain the comparability of the company's share price and per-share metrics. The share consolidation will replace every five existing shares with four new shares.
The company also said that it will rename itself as Signature Aviation PLC, effective around November 25.
"Following completion of the Ontic disposal and given the on-going process to dispose of the Engine Repair & Overhaul business, it is expected that the group will from that point comprise predominantly the market-leading Signature business. The board has therefore elected to change the company's name to 'Signature Aviation PLC' which will better align it with the company's most significant brand in its core market," BBA Aviation explained.
The company's Signature Flight Support business provides full-service flight and home base support including refuelling, ground handling and maintenance services.
By Tapan Panchal; tapanpanchal@alliancenews.com
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