Gama Aviation (GMA, Farnborough) intends to delist from the London Stock Exchange (LSE) after a share buyback underway will likely to result in the vast bulk of stock coming under the control of just two related parties. Gama Aviation advised the bourse of its decision, which remains subject to shareholder approval, in an April 29, 2024 filing.
Reporting the the share buyback last month, ch-aviation flagged the possible Gama delisting from the LSE's Alternative Investment Market (AIM) sub-market. Unexpectedly liquid after the late 2023 sale of its US MRO business, Gama Aviation (Eng) Inc. subsidiary, Gama said the buyback, initially capped at 27% of the company's issued share capital but later uncapped, gave shareholders the "opportunity to review their investment in the group.
The two principal shareholders, founder and CEO Marwan Khalek and Bermiesco Holdings Limited, agreed not to participate in the buyback. However, at the time, it was noted that depending on the takeup of the buyback offer by smaller shareholders, Khalek's stake in Gama Aviation could increase to 53.9%, and Bermiesco's stake could grow to 46.1%. "In view of the likely significant increase in shareholder concentration coupled with the likely reduction in stock market liquidity in the company's shares, that may result from the tender offer, the board believes that a de-listing will be in the best interest of the company," a LSE filing at the time read.
"The board has now concluded that the de-listing is in the best interests of the company and its shareholders as a whole," the April 29 filing says. It cites the permanent cost savings, highly illiquid trading, insufficient interest institutional and other investors in a free float, a consolidation of shares to Marwan Khalek and Bermesico, not using the listing to raise fresh capital or issue paper consideration to fund acquisitions, and the legal and regulatory burdens of maintaining a listing, as reasons why.
"The board is very much focused on strengthening the company's financial performance and has carefully considered over an extensive period of time the benefits and drawbacks to the company retaining its listing on AIM," the filing adds.
Gama Aviation's business jet fleet includes one B737-700(BBJ), a Challenger 604, a 605, and 650, a Citation Mustang, a Falcon 7X, a G280, and a Global Express among others. It operates from bases in Bournemouth, Glasgow International, Aberdeen Dyce, and Jersey.
Subject to shareholder approval, Gama's last day of trading on the LSE is expected to be May 30, 2024.
