Stobart Group Limited Eddie Stobart Logistics - Publication of Admission (7399C)
19 April 2017 - 10:45PM
UK Regulatory
TIDMSTOB
RNS Number : 7399C
Stobart Group Limited
19 April 2017
19 April 2017
Stobart Group Limited
("Stobart" or the "Group")
Eddie Stobart Logistics plc ("Eddie Stobart") - Publication of
Admission Document
The Board of Stobart Group Limited, the support services and
infrastructure group, notes that Eddie Stobart has, today,
published an admission document in connection with its proposed
institutional placing and admission to trading on AIM, which is
expected to occur on 25 April 2017.
The terms of the transaction value the interest that the Group
held in Eddie Stobart at GBP184.6 million, at the issue price of
160 pence per Eddie Stobart share, and the Group expects to receive
proceeds comprising cash of GBP113.1 million and a retained
shareholding of GBP71.5 million, representing 12.5% of Eddie
Stobart's share capital on admission to AIM.
Eddie Stobart is a leading supply chain and logistics
organisation in which the Group currently holds a 49% economic
interest prior to its flotation. The stake was held at a book value
of GBP54.7 million as at 31 August 2016 and contributed profit
before tax of GBP6.9 million in the year ended 29 February 2016.
The Group has no current plans to sell its remaining stake in Eddie
Stobart and has agreed to standard lock-up arrangements for a
period of 6 months. The transaction will generate a significant
profit for the Group and demonstrates the ability of the Group's
management team to continue to create value for shareholders. The
proceeds will support the Group's progressive dividend policy and
increase the scope for adding value to the Group's other businesses
through selective investment. The Board will consider the best use
of the cash proceeds of the transaction and will provide an update
with the Group's annual results announcement on 11 May 2017.
The Board looks forward to maintaining its close working
relationship with Eddie Stobart and continuing to support the
company as a shareholder following its successful flotation on
AIM.
Enquiries:
Stobart Group Limited c/o Redleaf Communications
Andrew Tinkler, Chief Executive
Officer
Mark Adams, Chief Financial
Officer
Redleaf Communications +44 207 382 4730
Charlie Geller Stobart@redleafpr.com
Sam Modlin
Influence Associates +44 207 287 9610
Stuart Dyble
James Andrew
Notes to Editors:
Stobart Group
Stobart is an entrepreneurial support services and
infrastructure business deriving income from energy, aviation,
civil engineering and investments. The Group has a strong heritage
in logistics, systems and a customer focus that continues to
support all of our divisions. The Group's strategy is to drive
growth and profitability in its core Energy, Aviation and Rail
Divisions whilst realising value for shareholders from its
Infrastructure and Investments Divisions.
Stobart Energy
Stobart Energy is the market leader and number one supplier of
biomass fuel in the UK, sourcing, processing and supplying fuel to
renewable energy plants under a mix of short and long-term
contracts. Its target is to deliver 2 million tonnes of biomass
fuel per annum by 2018.
Stobart Aviation
Stobart's Aviation Division has a strong foundation for
unlocking value across a number of businesses. Our London airport,
London Southend Airport ("LSA"), the capital's newest airport, will
play an important role in providing capacity as London continues to
grow in a capacity constrained market. Its target is to grow
passenger numbers at LSA to over 2.5 million passengers per year by
2018. Our regional airline, Stobart Air, operates a valuable
long-term franchise under the Aer Lingus brand and also operates
under the Flybe brand from LSA and Isle of Man. The Aviation
Division also includes Propius, a Dublin-based aircraft leasing
business, and ground handling and Fixed Based Operation executive
handling at LSA.
Stobart Rail
Stobart Rail is one of the UK's leading providers of innovative
and efficient rail and non-rail civil engineering projects. It also
provides expert and specialist civil engineering across other areas
including supporting investment in the Group's other divisions. Its
focus is to develop long-term frameworks and solid client
relationships in addition to broadening its capabilities and its
recognition within the industry.
Stobart Infrastructure & Investments
Stobart will continue to maximise value from its portfolio of
investments, infrastructure and property assets. The Stobart team
has a long history of creating value from its infrastructure assets
and investments.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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