LONDON, UK: Gama Aviation, the global business aviation service provider, has agreed the sale of its 20% holding in the issued share capital of China Aircraft Services Limited (CASL) to Hutchison CCF Investments Limited.
China Aircraft Services Limited (CASL) provides services to commercial airlines at Hong Kong Airport.
The sale, which is for cash consideration of US$2.0m, is expected to close within the next 30 days subject only to the (i) consent to the Sale and waiver of their pre-emption rights by the other China Aircraft Services Limited (CASL) shareholders; and (ii) approval of the Hong Kong Airport Authority.
The proceeds from the sale, which represents the Group’s last associate investment, will be used to support the on-going strategic investments in its core businesses over which it can exercise full control.
In the Company’s 2020 annual accounts, there were losses attributable to the investment in CASL, on a Statutory basis, of US$13.2m (2021 interim accounts for 6 months to 30 June 2021: US$nil). The Company’s share of CASL losses recorded within Adjusted EBIT were US$3.4m (2021 interim accounts for 6 months to 30 June 2021: US$1.5m). In the Company’s balance sheet as at 31 December 2020, the investment in CASL was recognised at US$2.0m (2021 interim balance sheet at 30 June 2021: US$2.0m). On completion of the Sale no gain or loss on disposal is expected.
The sale is a related party transaction as the purchaser is an associate of the company’s largest shareholder Hutchison Capital Holdings Limited.
The directors of Gama Aviation (excluding Hutchison’s representative, Simon To), having consulted with the Company’s nominated advisor WH Ireland Limited, consider that the terms of the Sale are fair and reasonable insofar as its shareholders are concerned.
Founded in 1983 with the simple purpose of providing aviation services that equip its customers with decisive advantage, Gama Aviation (LON:GMAA) is a highly valued global partner to blue chip corporations, government agencies, healthcare trusts and private individuals.
The Group has three global divisions: Business Aviation (Aircraft Management, Charter, FBO & Maintenance), Special Mission (Air Ambulance & Rescue, National Security & Policing, Infrastructure & Survey, Energy & Offshore); and Technology & Outsourcing (Flight Operations, FBO, CAM software, Flight Planning, CAM & ARC services)