Avation PLC (LON:AVAP) said it has terminated its strategic review and formal sales process as a result of “ongoing disruption” caused by the coronavirus pandemic.
The aircraft leasing firm said it had been engaged with multiple interested parties as part of the sales process, but as a result of market conditions, these have been delayed.
READ: Avation agrees six-year lease extension with Asian flag-carrier
Avation noted that the coronavirus lockdown has continued to disrupt business activities, particularly air travel, on an unprecedented scale and that market volatility remained high with an uncertain outlook for the global economy in the short term.
As a result, Avation said it had concluded that a formal sales process at present was “unlikely to produce an outcome that accurately reflects the long-term value of the company at a value that is attractive to shareholders”.
The company also said that a protracted sales process could pose a distraction to its day to day operations, and as a result, it has decided to terminate its strategic review and sale process and is no longer in discussions with any interested parties.
Going forward, Avation said it will continue to focus on near-term execution and liquidity, including managing its capital structure.
Shares in the company were 3.3% lower at 174p in mid-morning trading on Wednesday.