19 Apr 2017 13:45
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 £184.6 million, at the issue price of 160 pence per Eddie Stobart share, and the Group expects to receive proceeds comprising cash of £113.1 million and a retained shareholding of £71.5 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 £54.7 million as at 31 August 2016 and contributed profit before tax of £6.9 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
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Redleaf Communications | +44 207 382 4730 |
Charlie Geller Sam Modlin | Stobart@redleafpr.com |
Influence Associates | +44 207 287 9610 |
Stuart Dyble James Andrew
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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.