Aircraft lessor Avation PLC (LON:AVAP) is mulling a proposal it has received to buy its current portfolio of ATR turbo prop planes.
It told investors the net proceeds of any deal would need to deliver shareholders significant value above book value for it to progress.
The firm has a fleet of 38 aircraft and 24 such ATR72 planes - 22 of which are the subject of this proposal.
These are relatively new ATR72 aircraft with a remaining lease term of around 6.3 years and are leased to a number or airlines in Europe, Asia and Australia, the group said.
Executive chairman Jeff Chatfield said: "As a matter of policy, the company is willing to sell aircraft and reinvest the proceeds in order to fund the equity for purchases of new aircraft.
"If this proposed transaction is to progress, the net proceeds would need to deliver shareholders significant value above book value. We would seek shareholder approval for any portfolio transaction of this scale.
"No decision on a sale has been made. However, the directors are willing to consider a proposal aligned with attractive shareholder returns for this portfolio, a portfolio which currently generates strong cash yields for the company."
Shares flew 6.25% higher at 161.5p.