This announcement contains inside information for the purposes of article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018.

23 January 2024

ESKEN LIMITED
("Esken", "Company" and/or "the Group")

Update on LSA and Carlyle Global Infrastructure Fund

Esken, the aviation group, announces that, further to the announcement issued on 26 September 2023 and the circular issued on 6 November 2023 (the "Circular"), on 19 January 2024 its wholly owned subsidiary London Southend Airport Company Limited ("LSA") submitted its defence in relation to a court claim by Carlyle Global Infrastructure Fund ("CGI") alleging a technical breach by LSA with respect to the convertible loan agreement entered into between LSA and CGI. Esken is confident that LSA has a robust position in relation to the CGI claim.

LSA has subsequently received notification that CGI is alleging a number of further breaches by LSA with respect to the convertible loan agreement and that CGI has issued an acceleration notice to LSA, demanding repayment of the loan in the amount of £193.75 million by 16 February 2024. The convertible loan has a maturity date of August 2028. There have been no payment defaults by LSA in relation to the convertible loan agreement and LSA cashflow has been in line with expectations. Esken and LSA are investigating the validity ?of the alleged breaches in conjunction with advisers.

Esken believes that any such acceleration would have significant adverse implications for LSA, the Group and the Exchangeable Bondholders (as further set out in the Circular) as it would be value destructive for all stakeholders, including CGI itself. Esken is disappointed that CGI has chosen to take this action based on purported technical defaults, as Esken had viewed CGI as a long-term partner in the continued development of the airport. Esken and LSA will be engaging with CGI to resolve the present issues.

LSA is an attractive strategic airport asset in the medium term as aviation markets and the airport continues to recover from the unprecedented effects of the COVID-19 pandemic. The board of Esken believes that there is considerable value in the LSA business and continues to support its liquidity needs in line with the recovery plan. As a result, LSA continues to meet its obligations as they fall due.

As previously announced, Esken is making good progress in addressing the maturity and terms of the Exchangeable Bond and towards the sale of its non-core assets. In addition, Esken continues to focus on seeking a new owner for LSA, with a view to crystallising shareholder value through securing the right long-term partner, which recognises the inherent strategic opportunity and is best placed to support future growth. A successful outcome to the sale process would in any event repay the convertible loan instrument ahead of its maturity date.

Enquiries:

Esken Limited    C/o Teneo

Teneo

Olivia Peters

07902 7701008

esken@teneo.com