(Alliance News) - Camellia PLC on Thursday said it expects approval for the sale of its holding in BF&M Ltd to Bermuda Life Insurance Co Ltd to be delayed into the first quarter of the current year.
The Kent-based agriculture and engineering services firm in June said it will sell its entire 37% stake in BF&M to Bermuda Life Insurance Co Ltd, a subsidiary of Argus Group Holdings Ltd, for USD100.0 million. It is conditional upon regulatory and tax approvals.
Camellia explained that after its proposed disposal, BF&M's board implemented a shareholder rights agreement which has since been removed.
Further, BF&M has separately announced a partnership with Equilibria Capital Management Ltd, which is Argus's major shareholder. Under the partnership, BF&M has committed to a "significant" investment in a dedicated Equilibria Investment fund which will include an initial investment in respect of a 16.3% stake in Argus.
Camellia said that these developments have impacted the expected timetable for regulatory approval for its disposals of its 37% stake in BF&M to Bermuda Life Insurance.
The company added that a gain on disposal of about GBP1.9 million will be reflected in its 2023 results.
Camellia shares rose 2.7% to 5,095.00 pence each on Thursday in London.
By Tom Budszus, Alliance News slot editor
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Camellia (CAM)