Esken launches sale of renewables division

UK aviation and renewables company Esken Ltd (LSE:ESKN) has started an auction for its renewables division, which provides renewable fuel supply services, as part of a strategic review process launched late last year.

“A sale process for Esken Renewables is currently in progress, with a number of interested parties involved in discussions,” the British firm said in a filing.

The business up for sale specialises in biomass fuel supply, which the company processes from waste wood and by-products and delivers to power plants. It has long-term contracts to supply 1.7 million tonnes of fuel to biomass plants, according to its website. The division is expected to report about GBP 19 million (USD 22.6m/EUR 21.4m) in EBITDA for the full year ended on February 28, 2023.

As part of the strategic review launched in November, Esken has decided to go for a managed disposal process. The company has also decided to explore a sale of its aviation business, primarily London Southend Airport, and also continues to seek buyers for its non-core assets.

The net proceeds from divestments will be used firstly to pay down debt and provide liquidity to the remaining group until the disposal programme has been completed.

(GBP 1 = USD 1.194/EUR 1.126)

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