Termination Strategic Review & Formal Sale Process

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

27 May 2020

AVATION PLC ("Avation" or the "Company")

Termination of Strategic Review and Formal Sale Process

On 6 January 2020, in response to an unsolicited approach by a bona fide potential offeror, Avation announced that it was undertaking a comprehensive review of strategic options available to the Company, including, but not limited to, a potential sale through a formal sale process as referred to in Note 2 on Rule 2.6 of the City Code on Takeovers and Mergers (the "Code").

On 7 March 2020, Avation announced that it had engaged with multiple interested parties as part of the formal sale process but, as a result of market conditions owing to the COVID-19 pandemic, progress had been delayed. Since then, the Company has engaged with a number of parties to establish whether they were prepared to make a firm proposal (whether for the Company or certain assets of the Company).

Over the past several weeks, however, COVID-19 has continued to disrupt business activities, particularly air travel, on an unprecedented scale. Market volatility remains high and the short-term, global economic outlook is uncertain.

In light of this ongoing disruption, the Board of Avation has concluded that, at present, a formal sale process is unlikely to produce an outcome that accurately reflects the long-term value of the Company and at a value that is attractive to shareholders. The Board is also mindful of the distraction posed to its day to day operational activities by a protracted formal sale process. Consequently, the Board has decided to terminate the strategic review and formal sale process and confirms that it is no longer in active discussions with any interested parties.

The Company will continue to focus on near-term execution and liquidity, including managing its capital structure as necessary.

Following this announcement, the Company is no longer considered to be in an offer period, as defined in the Code, and the requirement to make disclosures under Rule 8 of the Code has now ceased.

Further announcements will be made as appropriate.

Enquiries:

In accordance with Rule 26.1 of the Code, a copy of this announcement will, subject to certain restrictions relating to persons resident in restricted jurisdictions, be available at www.avation.net. The person responsible for arranging for the release of this announcement on behalf of Avation is Duncan Scott General Counsel and Company Secretary. For the avoidance of doubt, the content of the website referred to above is not incorporated into and does not form part of this announcement.

Forward Looking Statements

This announcement (including information incorporated by reference in this announcement), oral statements made regarding the formal sale process, and other information published by Avation may contain statements about Avation that are or may be deemed to be forward looking statements. Such statements are prospective in nature. All statements other than historical statements of facts may be forward looking statements. Without limitation, statements containing the words "targets", "plans", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "estimates", "projects" or "considers" or other similar words may be forward looking statements. Forward looking statements inherently contain risks and uncertainties as they relate to events or circumstances in the future. Important factors such as business or economic cycles, the terms and conditions of Avation's financing arrangements, tax rates, or increased competition may cause Avation's actual financial results, performance or achievements to differ materially from any forward looking statements. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward looking statements, which speak only as of the date hereof. Avation disclaims any obligation to update any forward looking or other statements contained herein, except as required by applicable law.

About Avation

Avation is an aircraft leasing company, headquartered in Singapore, owning and managing a fleet standing at 48 commercial passenger aircraft which it leases to airlines around the world.

About Wells Fargo Securities

Wells Fargo Securities International Limited, a subsidiary of Wells Fargo & Company trading as "Wells Fargo Securities", is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. Wells Fargo Securities is acting exclusively as financial adviser to Avation and will not be responsible to anyone other than Avation for providing the protections afforded to its client, or for providing advice in relation to the matters set out in this Announcement.

This announcement does not constitute an offer to purchase any securities, or an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer to purchase or sell securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The release, distribution or publication of this announcement in jurisdictions other than the UK may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the UK should inform themselves about and observe any applicable requirements.