Avation Plc: Strategic Review And Formal Sale Process

The Board of Avation announces today that it is undertaking a comprehensive review of the strategic options open to it in order to maximise value for shareholders. These options include merger and acquisition activity, an aircraft portfolio sale or review etc., as well as a potential sale of the Company through the commencement of a “formal sale process” (as referred to in Note 2 on Rule 2.6 of the Code).

The Board has appointed Wells Fargo Securities as its financial adviser to assist it with its review.

The Panel on Takeovers and Mergers (the “Takeover Panel”) has agreed that any discussions with third parties may be conducted within the context of a formal sale process. Accordingly, it has granted a dispensation from the requirements of Rules 2.4(a), 2.4(b) and 2.6(a) of the Code such that any interested party participating in the formal sale process will not be required to be publicly identified under Rules 2.4(a) or 2.4(b) as a result of this announcement and any interested party participating in the formal sale process will not be subject to the 28-day deadline referred to in Rule 2.6(a) of the Code for so long as it is participating in the formal sale process.

Following this announcement, the Company is now considered to be in an "offer period" as defined in the Code, and the dealing disclosure requirements set out below will apply.

The Company confirms that, at the time of this announcement, it is in preliminary discussions with one interested party about a potential sale of the Company.

Parties with a potential interest in making a proposal should contact Wells Fargo Securities, whose details are set out below.

Any party interested in participating in the formal sale process will be required to enter into a non-disclosure agreement with Avation on terms satisfactory to the Board and its advisers. The Company then intends to provide such interested parties with certain information on the business, following which interested parties will be invited to submit their proposals to Wells Fargo Securities. Further announcements regarding timings and procedures for the formal sale process will be made as appropriate.

It should be noted that there can be no certainty that an offer will be made, nor as to the terms on which any offer will be made. The Board of Avation reserves the right to alter or terminate the process at any time and if it does so it will make an announcement as appropriate. The Board of Avation also reserves the right to reject any approach or terminate discussions with any interested party at any time.