Press Release

Issued by Gama Aviation.

February 9, 2018

Gama Aviation Plc, the global business aviation services provider, today announced its intention to raise £48 million (approximately US$67 million), before commissions, fees and expenses, through a conditional placing of 19,591,837 new ordinary shares of one pence each in the company with institutional and other investors at a placing price of 245 pence per placing share.

Highlights of the proposal include;

- Proposed placing to raise £48 million (approximately US$67 million) to accelerate the group’s strategy of becoming the leading global business aviation services group

- Hutchison Capital Holdings Limited, an affiliate of Hutchison Whampoa (China) Limited, has agreed to subscribe for new ordinary shares in the placing comprising approximately 21% of the enlarged issued share capital

- US$19.8 million of the proceeds from the placing will be used to acquire Hutchison’s Hong Kong aviation interests: its 50% stake in Gama Aviation Hutchison Holdings Ltd and its 20% stake in China Aircraft Services Limited

- The balance of proceeds are intended to be deployed during 2018 as follows:

- US$20 million capital investment in two ground base maintenance facilities in the US and the development of the Sharjah business aviation centre in the Middle East

- acquisitions targeting Air opportunities in Europe and the Middle East and ground opportunities in Europe

- The placing and the associated use of proceeds are expected to be dilutive to earnings in 2018, neutral in 2019 and enhancing thereafter

- Directors are confident in the strength of the group’s operations and believe the company is well placed to achieve its expectations in the current year. 

Marwan Khalek, chief executive of Gama Aviation, said: “The group operates a robust and resilient business model and we have built a strong operational platform to support our growth through both organic investment and acquisition. The execution of our growth strategy now requires further capital to capture the investment opportunities with which we are currently presented and to accelerate the next stage of our development.

"Hutchison’s investment in the company provides a strong endorsement of our stated strategy and our readiness to execute against that strategy. We welcome them as a long term partner who shares our ambition of becoming the leading global business aviation services company.”

A circular will be distributed to shareholders and made available on Gama Aviation’s website shortly with further details of the placing and to give notice of the general meeting to consider and, if thought fit, approve the resolutions laid out in the circular. The General Meeting is to be held at the offices of the company at Business Aviation Centre, Farnborough Airport, Farnborough, Hampshire GU14 6XA at 2 p.m. on Thursday 1 March 2018. The formal notice of general meeting is set out in the circular.