Stobart Group has sealed an agreement to buy a 49% stake in its struggling Irish former subsidiary Stobart Air (Dublin International) for between GBP300,000 and GBP400,000 pounds (USD370,000 to USD492,000), according to the Irish Independent.
The British infrastructure, aviation, and civil engineering company acquired the holding from EY, administrators of the insolvent consortium Connect Airways of which the Aer Lingus Regional operator is a part, the newspaper said citing unnamed sources close to the deal. The other 51% is owned by Stobart Air's employees.
The agreement also reportedly includes a future conditional investment by Stobart Group of around GBP5 million (USD6.16 million) if it can make Stobart Air profitable.
Stobart Group said in a statement on April 16 that it was considering buying that carrier and its subsidiary Propius Leasing from the administrators. Stobart Air had not responded to ch-aviation's request for comment at the time of going to press, while Stobart Group said: "We have nothing to add to the statement that was put out last week on this subject. We don’t comment on market rumour or speculation."
Stobart Group sold the airline to Connect Airways, owner of collapsed UK carrier flybe. (2002), in February 2019. The group had formed Connect with Virgin Atlantic and investment advisors Cyrus Capital in December 2018, and it holds a 30% stake in the consortium.
As reported earlier this week, Stobart Group continues to possess about USD100 million worth of liabilities connected to Stobart Air.
Without a deal, Stobart Air faces the prospect of examinership in Ireland, in which it would be placed under the protection of the courts while it restructures.
