Gama Aviation, the global business aviation service provider, has agreed the sale of its 20% holding in the issued share capital of China Aircraft Services (CASL) to Hutchison CCF Investments. CASL provides services to commercial airlines at Hong Kong Airport.
The sale, which is for cash consideration of US$2.0million, is expected to close within the next 30 days subject only to the consent by the other CASL shareholders, and approval of the Hong Kong Airport Authority. The proceeds from the sale, which represents the Group’s last associate investment, will be used to support the on-going strategic investments in its core businesses over which it can exercise full control.
In the company’s 2020 annual accounts, there were losses attributable to the investment in CASL, on a Statutory basis, of US$13.2m (2021 interim accounts for 6 months to 30 June 2021: US$nil). The company’s share of CASL losses recorded within Adjusted EBIT were US$3.4m (2021 interim accounts for 6 months to 30 June 2021: US$1.5m). In the company’s balance sheet as at 31 December 2020, the investment in CASL was recognised at US$2.0m (2021 interim balance sheet at 30 June 2021: US$2.0m). On completion of the Sale no gain or loss on disposal is expected.
The sale is a related party transaction under the AIM Rules for Companies as the purchaser is an associate of the Company’s largest shareholder Hutchison Capital Holdings.