BBA Aviation PLC (LON:BBA) gained some altitude on Friday as it unveiled plans to return US$835mln to shareholders following the sale of its Ontic aviation parts business.
The FTSE 250 firm, which provides aircraft support services, said the sale of the Ontic business will net it around US$1.3bn, of which US$835mln will be returned to investors through a special dividend of around US$0.80 per share to be paid on 13 December.
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BBA will also undertake a share consolidation, replacing every 5 of its current shares with 4 new shares.
Following the disposal of Ontic, and the ongoing discussions to sell its engine repair and overhaul business, BBA said its structure following these two sales will comprise mainly of Signature, its private charter aircraft business, and as such the company will be changing its name to Signature Aviation PLC on or around 25 November. It will remain a member of the FTSE 250.
The firm said the name change will “better align it with the company's most significant brand in its core market” and create a stronger and clearer connection of the brand to shareholders and other stakeholders.
In early trading, BBA’s shares were 2.4% higher at 311p.