Gama Aviation, a London-listed business aviation services company, has announced plans to return £16.5 million ($20.8 million) to shareholders. This decision comes as part of a phased return, allowing Gama to meet its near-term capital requirements.
Tender Offer Details
Shareholders will have the opportunity to sell their shares at a price of 95 pence each through a tender offer. This offer represents a 5.55% premium to the closing price of 90 pence per share on Friday. Gama is looking to tender up to 17.5 million shares, which amounts to 27% of its current issued share capital.
Sale of Jet East
Gama recently completed the sale of its US MRO Business, known as Jet East, for approximately $131 million on November 3rd. As previously stated, the company’s board intended to return at least £36.8 million ($46.3 million) or 55 pence per share from the proceeds of this sale.
Capital Requirements Review
Following a thorough review of Gama’s capital requirements, the board has determined that an appropriate level of debt funding should support these needs. The company is actively seeking such funding due to current uncertainties in terms of availability and favorable terms.
In light of this, Gama believes it is prudent to retain sufficient funds within the business to fully meet its near-term capital requirements.
Gama forecasts that its revenue from continuing operations in 2023 will amount to approximately $145 million. This figure represents a decrease from the previous year’s revenue of $168 million. However, the company expects adjusted earnings before interest and taxes to align with management’s expectations.
As of 15:14 GMT, Gama’s shares remained unchanged at 90.0 pence. Over the past 12 months, the company’s shares have increased by 33%.