On 6 January 2020, in response to an unsolicited approach by a bona fide potential offeror, Avation announced that it was undertaking a comprehensive review of strategic options available to the Company, including, but not limited to, a potential sale through a formal sale process as referred to in Note 2 on Rule 2.6 of the City Code on Takeovers and Mergers (the "Code").
On 7 March 2020, Avation announced that it had engaged with multiple interested parties as part of the formal sale process but, as a result of market conditions owing to the COVID-19 pandemic, progress had been delayed. Since then, the Company has engaged with a number of parties to establish whether they were prepared to make a firm proposal (whether for the Company or certain assets of the Company).
Over the past several weeks, however, COVID-19 has continued to disrupt business activities, particularly air travel, on an unprecedented scale. Market volatility remains high and the short-term, global economic outlook is uncertain.
In light of this ongoing disruption, the Board of Avation has concluded that, at present, a formal sale process is unlikely to produce an outcome that accurately reflects the long-term value of the Company and at a value that is attractive to shareholders. The Board is also mindful of the distraction posed to its day to day operational activities by a protracted formal sale process. Consequently, the Board has decided to terminate the strategic review and formal sale process and confirms that it is no longer in active discussions with any interested parties.
The Company will continue to focus on near-term execution and liquidity, including managing its capital structure as necessary.
Following this announcement, the Company is no longer considered to be in an offer period, as defined in the Code, and the requirement to make disclosures under Rule 8 of the Code has now ceased.
Further announcements will be made as appropriate.