Stobart To Buy Southend Airport For Up To GBP21 Mln
Date added: 3 December, 2008
3.12.2008 (Reuters)
British transport firm Stobart Group said on Tuesday it had agreed to buy Southend
Airport in south-east England from Regional Airports Limited for up to £21 million
(USD$31.1 million).
Stobart, whose trucks are a common sight on Britain’s motorway network, said
the deal would be in line with its multi-modal transport strategy, which already
includes rail and sea operations.
Stobart chief executive Andrew Tinkler said: “At one stroke we have found our
Southern base and greatly enhanced our position as a leading point-to-point service
provider for customers in the UK and Europe who require fast and efficient services
by air as part of their logistics solutions.
“We have already started talking to a number of airlines to investigate new passenger
services.”
Stobart, which also has an option on Carlisle Airport in north-west England,
said it would fund an initial £16 million payment from the £10 million net proceeds
from a placing and a £6 million loan.
An additional payment of up to £5 million would depend on the airport’s development
and would come from existing facilities, it added.
http://uk.reuters.com/article/basicIndustries/idUKL262720620081202
see also
December 3, 2008
Stobart to buy Southend airport as southern base
by Angela Jameson – The Times
Stobart Group is buying Southend airport in a £21 million deal that it hopes
could restore the status of what was once a leading London airport.
Andrew Tinkler, chief executive of the Carlisle-based transport company, said:
"This will be our London gateway. We need something in the South and we think
we have got Southend at a keen price, considering its potential."
The airport is near London Gateway, DP World’s new seaport (link) on the banks of the Thames near Thurrock, Essex, which opens in 2010. Stobart
hopes that the airport will become a niche air-freight destination, particularly
for high-value goods. It employs 100 people and had a £6.9 million income in
the year to March 31.
Mr Tinkler said that work would start to build a railway station on the site
almost immediately, as planning permission has been received. The line will take
passengers into Liverpool Street Station in Central London in 49 minutes, putting
it into competition with Stansted airport. "We have already started talking to
a number of airlines to investigate new passenger services," Mr Tinkler said.
Analysts at Investec said that the acquisition greatly enhanced the group’s position
as a leading point-to-point service provider for customers in Britain and Europe.
"The group is building a very powerful UK-based freight transport and logistics
business and is well-placed to capture significant market share in the economic
downturn," Investec said in a note.
Stobart said it would fund an initial £16 million payment from the £10 million
net proceeds of a placing and a £6 million loan. An additional payment of up to
£5 million would depend on the airport’s development and would come from existing
facilities.
Stobart also has an option on Carlisle airport in Cumbria and will hear this
month whether it has planning permission to upgrade the site, where it wants to
consolidate its haulage operations and improve passenger facilities. If permission
is granted, the option will be exercised in January.
http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article5276175.ece
Posted: Wednesday, December 3rd, 2008. Filed in News about Airports.
