(Alliance News) -Â Jefferies International Ltd on Thursday said Mitie Group PLC shareholder Project County SPV 1 Designated Activity Co has sold its entire 7.0% stake.
Project County SPV 1 sold 99.4 million shares at a price of 70 pence each, raising GBP69.6 million. Mitie was not party to the placing of existing shares so will not receive any proceeds.
Shares in the Glasgow-based facilities management and professional services firm were trading 3.3% lower at 71.10p in London early Thursday.
Following the sale, Project County SPV 1 has no remaining stake in Mitie.
When Mitie completed its acquisition of Interserve Facilities Management in November 2020, it paid GBP105.0 million in cash and issued 248.4 million shares to How Group Ltd, of which 99.4 were issued to Project County SPV 1.
Interserve was a former London listing that fell into administration in 2019.
Mitie on Thursday, confirming it released the shares from lock-up arrangements entered into at the time of the Interserve deal, noted How Group has now sold all its remaining holding.
"The shares were previously subject to share box escrow arrangements, which were put in place at completion of the acquisition of Interserve Facilities Management to provide the company with security for a two-year period following completion against any indemnity claims, including any ICO fine which might arise out of the cyber incident to which, inter alia, Interserve Facilities Management was subject in 2020," it explained.
Mitie said GBP40 million of the proceeds of the How Group share sale have now been used to replace the shares held in escrow.
By Lucy Heming;Â lucyheming@alliancenews.com
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Mitie (MTO)