Braemar Shipping Services PLC Disposal of Wavespec (2180U)
April 01 2021 - 01:00AM
UK Regulatory
TIDMBMS
RNS Number : 2180U
Braemar Shipping Services PLC
01 April 2021
1 April 2021
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE
REGULATION (EU NO. 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF
THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE
IN THE PUBLIC DOMAIN.
BRAEMAR SHIPPING SERVICES PLC
("Braemar", the "Company" or the "Group")
Disposal of Wavespec
Braemar, a leading international Shipbroker and provider of
expert advice in shipping investment, chartering and risk
management, is pleased to announce that it has completed the
disposal of its Wavespec business ("Wavespec") to Wavespec Holding
BV (the "Buyer") for a total consideration of GBP2.635 million (the
"Disposal"). Wavespec was the Group's Engineering division and its
disposal is in line with the Group's new strategy that is centred
on its core Shipbroking business.
Wavespec provides engineering and other expert consultancy
services and solutions to the gas processing, liquefied gas, and
marine industries. For the year to 29 February 2020, Wavespec
generated revenue of GBP3.1 million and an underlying operating
loss of GBP1.4 million. Wavespec will be treated as a discontinued
operation for the year ended 28 February 2021 and the total
reported loss is estimated to be around GBP2.4 million made up of a
trading loss of GBP1.7 million and an estimated loss on disposal of
GBP0.7million. Wavespec's gross assets, as at the last reported
balance sheet date of 31 August 2020 were GBP0.5 million.
The GBP2.635 million gross consideration has been satisfied by
the issuance of a promissory note with a maturity date of 31 March
2026 (the "Note"), which is currently expected to be retained by
the Company. The disposal agreement contains an obligation for the
Buyer to secure the Note by providing a standby letter of credit
issued by an international bank with an acceptable credit rating.
Should they fail to deliver such a letter of credit, Braemar can
elect to receive a sum of cash of GBP0.5 million from the Buyer
with the balance of the Note of GBP2.135 million remaining
unsecured. The Board intends to use the consideration from the
Disposal to improve the net debt position of the Company. The
Disposal is being structured as the sale of 100% of the shares in
three separate legal entities from within the Group, Braemar
Wavespec Limited, Braemar Wavespec Inc. and Braemar LNG BV. The
relevant Wavespec employees, including Wavespec's Managing Director
Sheila McClain, will leave the Group as part of the Disposal.
James Gundy, CEO of Braemar said:
'The disposal of Wavespec is in line with our stated strategy of
refocusing Braemar on its shipbroking core and I am therefore
pleased that we have been able to find suitable buyers for
Wavespec. We look forward to continuing to work with them under
their new ownership and seeing the business thrive.'
Paolo Danesi of Wavespec Holding BV said:
'We are delighted to have completed this acquisition of
Wavespec, whose brand and expertise is very well known and
respected as experts in the LNG industry. I am looking forward to
working with Sheila and her team to build the business in what is a
growing market for their services.'
For further information, contact:
Braemar Shipping Services plc
James Gundy, Group Chief Executive Tel +44 (0) 20 3142 4100
Officer
Nick Stone, Group Chief Operating Officer
and Finance Director
finnCap
Matt Goode/ James Thompson (Corporate Tel +44 (0) 20 7220 0500
Finance)
Andrew Burdis (ECM)
Buchanan
Charles Ryland / Stephanie Watson / Tel +44 (0) 20 7466 5000
Matilda Abraham
Notes to Editors:
About Braemar
Braemar is a leading international Shipbroker and provider of
expert advice in shipping investment, chartering and risk
management. Braemar employs approximately 530 people in 30
locations worldwide across its Shipbroking, Financial and Logistics
divisions.
Braemar joined the Official List of the London Stock Exchange in
November 1997 and trades under the symbol BMS.
For more information, including our investor presentation, visit
www.braemar.com
About Wavespec Holding BV
Wavespec Holding BV is backed by Cosmos Sicav Plc, an Investment
Fund managed by Abalone Asset Management Ltd, committed to
investing aggressively in the "energy transition".
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END
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