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(Alliance News) - Majestic Wine PLC proposed a special dividend Friday after it agreed to sell its Majestic retail and commercial units for GBP95 million to Fortress Investment Group LLC, as it looks to focus on growing its Naked Wines business.
Majestic will sell its Majestic Wine Warehouses Ltd and Les Celliers de Calais SAS unit for GBP95 million to CF Bacchus Holdings Ltd, controlled by Fortress. In addition, Majestic will sell a freehold property related to the disposed businesses for GBP5 million to a separate firm.
The sale is expected to complete in the fourth quarter of 2019.
Majestic will use the funds raised to eliminate its debt as well as invest in the growth of its remaining business, the online Naked Wines. The firm will pay a 5.2 pence per share special dividend using GBP3.8 million of the proceeds.
For the year ended April 1, Majestic reported its Majestic retail and commercial arms generated GBP311.8 million - or 61% - of its total GBP505.1 million revenue. Naked Wines, in contrast, generated a further GBP178.4 million - or 35% - of this total revenue.
"I am delighted that we have managed to secure an independent future for both Naked and Majestic Retail and Commercial, allowing both companies to pursue growth by focusing on their unique propositions," Majestic Chief Executive Officer Rowan Gormley said.
Shares in Majestic were 2.9% higher at 266.50 pence in London on Friday.
