Southend Airport to be taken over by private equity firm Carlyle

Private equity firm Carlyle Global Infrastructure Fund is set to take an 82.5% stake in London Southend Airport

London Southend Airport is set to be taken over by a private equity firm from the United States.

The owner of the facility, Esken, said it started a process to sell its aviation business in June 2023.

US private equity giant Carlyle confirmed it would take an 82.5% stake in the airport earlier, while Esken would keep 17.5%.

Esken said it agreed to the proposal to settle its £193.75m ($246,499m) debt to Carlyle Global Infrastructure Fund.

"The company has agreed to accede to that recapitalisation proposal in relation to LSA," it said in a statement to shareholders on Wednesday.

"This will therefore proceed on a consensual basis, rather than through a contested court process, which could be potentially destructive for all stakeholders."

EasyJet is one of the airlines that flys from the airport in south Essex

Esken, formerly Stobart Group, would also delist its shares in London and "wind down" the remaining parts of the group, it said.

The firm added that the court process for its restructuring plan was "likely to take several months" but stressed "the future funding of LSA is secure".

'Dispute'

London Southend Airport's future has been uncertain since the Covid-19 pandemic put the brakes on international travel.

In 2021, as the pandemic continued to eat into passenger numbers, the company borrowed £125m from Carlyle to secure its finances through the crisis.

But later Carlyle claimed that Esken had broken the terms of its loan and asked for £200m back.

Both parties hoped the latest deal would settle that dispute.