Avion selger XL Leisure Group

[LN-KOG]

Denne kom på mail fra Dogg Hjaltalin i Avion Group i dag:

Ø Disposal of 100% in XL Leisure Group for USD 450 million
Ø Disposal of 51% in Avion Aircraft Trading for USD 51 million
Ø 49% in Avion Aircraft Trading retained by Avion Group
Ø Purchase price used for continued growth and repayment of loans

Avion Group (Avion or the ‘Company’) announces that it has reached agreement for the disposal of the entire issued share capital of XL Leisure Group for USD 450 million. XL Leisure Group was recently formed from the Charter & Leisure division within Avion and consists of Excel Airways Group in the UK, Star Airlines in France and Star Europe in Germany. The disposal is being made to a buy-out team, led by Phillip Wyatt, Chief Executive Officer of XL Leisure Group and is conditional on CAA approval in the UK.

The profit on the disposal before tax is estimated to be USD 107 million and is calculated according to the book value of the assets of XL Leisure Group as at 31 July 2006. The proceeds of USD 450 million is payable on completion of the puchase.

Avion also announces that it has reached agreement for the disposal of its 51% holding in Avion Aircraft Trading to a buy-out team for USD 51 million. Avion Aircraft Trading has purchased 24 Boeing and Airbus aircraft in the last 15 months and specialises in the trading of aircraft. The USD 51 million proceeds are payable on completion and the profit arising on disposal before tax is estimated to be USD 47 million, calculated according to the book value of the assets of Avion Aircraft Trading as at 31 July 2006. The book value of the 49% retained by Avion is USD 3 million.

The buy-out team consists of Hafthor Hafsteinsson, Chairman of Avion Aircraft Trading, Arngrímur Jóhannsson, the founder of Air Atlanta Icelandic and other key managers of Avion Aircraft Trading. Hafthor Hafsteinsson will resign as CEO of the Aviation Services Division of Avion Group.

A part of the purchase price of both XL Leisure Group and Avion Aircraft Trading is being paid by the buy-out team from a realisation of their Avion shares, amounting to 22% of the Company. An agreement is in place with Straumur Burðarás Fjárfestingarbanka to secure the sale of the shares. Part of the loan finance being provided to the buy-out team of XL Leisure Group amounting to USD 280 million is being secured by Avion until 1 March 2008. The Company has also agreed to secure financing of XL Leisure Group’s operations for Winter 2006/07. All financing provided by Avion is secured by a debenture on the shares of XL Leisure Group.

The total profit from the sale of both XL Leisure Group and 51% of Avion Aircraft Trading is approximately USD 154 million.

Commenting on the disposals, Magnus Thorsteinsson, Chairman of Avion Group said:

“Avion is an investment company focussed on transportation solutions. As part of our strategy, we are constantly looking for investment opportunities. Similarly, if we are able to realise excellent returns for our shareholders, we will divest our interests. These two deals represent a substantial return, whilst retaining an ongoing interest in Avion Aircraft Trading which generates a good contribution to Group profits.”