Proactive Investors - Southend Airpot owner Esken Ltd (LON:ESKN) has hinted that it is closing in on the sale of its energy infrastructure business, Esken Renewables.
Responding to press speculation on Tuesday, the firm confirmed talks were being held with infrastructure investor Pioneer Point Partners over the sale of the biomass fuel business.
According to Sky News, the deal for Esken Renewables could be worth up to £100 million and be completed as early as next week.
Esken updated in June that the process of selling Southend Airport, the larger of its two businesses, had begun, while talks were already being held over a deal for the energy wing.
“The group confirms [...] it is in advanced discussions with Pioneer Point Partners regarding a possible disposal of the entire issued share capital of Esken Renewables,” Esken added on Tuesday.
“Should the group complete the disposal of Esken Renewables, the net proceeds would be used to: repay the committed funding drawn under the group's facilities agreement with the speciality lender and associated costs; further contribute to the group's defined benefit pension scheme; and provide additional working capital in the short term.
“Discussions are ongoing and there can be no certainty that any transaction will be agreed or, if so, on what terms.”