The possible sale of a multi-million pound stake in Southend airport has been put on ice due to the coronavirus outbreak.
Stobart Group, owner of the airport, admitted talks had been held with an undisclosed investor.
The aviation, energy and civil engineering group issued a statement to the London stock exchange this morning in response to media speculation.
Sky News reported that AviAlliance, which operates airports in Germany, Athens, Budapest and Puerto Rico, had tabled a proposal to acquire a stake in the Essex site.
The offer emerged in the wake of the collapse of Flybe in which Stobart had a 30% stake in parent company Connect Airways.
The company said it noted recent press speculation regarding a potential sale of 25% of Southend airport.
Stobart added: “The group confirms that it has been in detailed discussions for several months regarding an initial minority investment from a potential strategic airport development partner that has indicated a headline value for London Southend airport of between £700 million-£800 million.
“No acceptable terms have been agreed and discussions have since been put on hold while both parties navigate the current Covid-19 outbreak.”
Stobart said in a trading update that “the short-term uncertainty driven by the Covid-19 outbreak has impacted on global airport passenger traffic generally, and London Southend airport specifically.”
The company added: “The airport’s airline partners have cautioned that they are undertaking significant route cancellations.
“These actions are likely to continue on a rolling basis for the foreseeable future and could result in the grounding of the majority of airline fleets.
“There is currently no certainty regarding the extent or length of the virus’ impact and it is therefore not possible to provide meaningful guidance on forecast passenger numbers for financial year 2021 at this time.
“Given the current market conditions, additional liquidity is likely to be required and the group is actively reviewing the most appropriate sources of funds to cover the period during which the airport is affected by the Covid-19 virus.”
Chief executive Warwick Brady said: “Despite the current challenges presented by the Covid-19 virus, we continue to own and operate aviation and energy assets with significant underlying value.
“It is impossible to say what structural changes will occur to the aviation industry in the coming months.
“However, ultimately the current crisis will pass, and people will continue to want to fly in and out of one of the world’s largest travel markets.”