(Sharecast News) - Stobart said talks to sell a stake in its Southend airport site had been put on hold because of the coronavirus pandemic.
The infrastructure group said it had been in discussions to sell 25% of the airport for several months. The potential deal valued the airport in Essex at £700-800m. Stobart did not name the possible buyer.
The company responded to a Sky News report that it had been approached by AviAlliance, a company based in Germany that operates airports in Athens, Budapest and Puerto Rico. Sky said AviAlliance approached Stobart in recent days and was being discussed by Stobart's board.
Sky said AviAlliance's approach valued Southend at about £700m but that Stobart placed a valuation of closer to £800m on the airport.
Stobart said: "The group confirms that it has been in detailed discussions for several months regarding an initial minority investment from a potential strategic airport development partner ... No acceptable terms have been agreed and discussions have since been put on hold while both parties navigate the current COVID-19 outbreak."
The UK company said on 5 March it had written down the value of its investments in Flybe, the collapsed airline, by more than £50m. Flybe had planned to expand its use of Southend to 10 routes in 2020.
Stobart said it would suffer a short-term impact from Flybe's failure but that "the long-term prospects of that airport remain compelling." Since its statement the COVID-19 coronavirus has wreaked further havoc on the airline industry, raising the prospect of major carriers going bust without government financial support.
30 Jun 2016 07:38