BBA Aviation to return $835m to shareholders, change name
BBA Aviation said on Friday that it is planning to return $835m to shareholders as it announced it was changing its name to Signature Aviation.
The company has completed the sale of its aerospace manufacturing business, Ontic, resulting in net proceeds of around $1.3bn. From the proceeds, it plans to return $835m to shareholders via a special dividend of 80.71 cents on 13 December. The group will also undertake a share consolidation, which will replace every 5 existing ordinary shares with 4 new ordinary shares.
BBA said that following the disposal of Ontic and given the ongoing process to sell the engine repair and overhaul division, it will soon comprise predominantly the airport services business, Signature.
"This will enable enhanced focus on Signature, which the board believes to be a significant source of future shareholder value creation," it said.
"The board has therefore elected to change the company's name to Signature Aviation which will better align it with the company's most significant brand in its core market. In addition, it will create a stronger and clearer connection of the brand to shareholders and other stakeholders."