Esken shares jump 20% after it confirms advanced talks to offload biomass unit for £100m
Published: 04:41 31 Oct 2023 EDT
Esken Ltd (LSE:ESKN, OTC:ESKNF), the London-listed owner of Southend Airport, is on the verge of securing a £100 million deal to divest its biomass unit to Pioneer Point Partners, an autonomous infrastructure investment firm.
The impending sale led to a 20% surge in Esken's share price after overnight reports were effectively confirmed.
"The group confirms that in accordance with the previously announced strategic review of its operating businesses, it is in advanced discussions with Pioneer Point Partners regarding a possible disposal of the entire issued share capital of Esken Renewables," investors were told.
The valuation was not confirmed, although Sky News said the £100 million figure it cited encompasses both debt and equity.
Esken said the proceeds would be deployed to pay down debt, top up its company pension scheme and for working capital.
Completion of this deal will allow Esken's management to concentrate on the auctioning of Southend Airport, which is anticipated to fetch a substantially higher valuation.
At 8.41 am, the shares were changing hands for 3.24p, up 0.54p.
