Logistics Development Group PLC Disposal of Greenwhitestar Acquisitions (8029D)
July 01 2021 - 1:00AM
UK Regulatory
TIDMLDG
RNS Number : 8029D
Logistics Development Group PLC
01 July 2021
1 July 2021
Logistics Development Group plc
(the "Company" or "LDG")
Disposal of Greenwhitestar Acquisitions
-- Disposal of interest follows successful turnaround of the business
-- Provides LDG with substantial resources to deliver its
investment strategy focused on growth opportunities
Logistics Development Group plc, the AIM investing company, is
pleased to announce the disposal of its interest in Greenwhitestar
Acquisitions Limited ("GWSA"), which is held through the Company's
49 per cent. stake in Marcelos Limited ("Marcelos") and Marcelos'
wholly-owned subsidiary Alpha Cassiopeiae Limited ("Alpha C"). GWSA
is the holding company for the Eddie Stobart, The Pallet Network,
IForce, Eddie Stobart Europe and The Logistics People
businesses.
Alpha C has agreed to sell its wholly-owned subsidiary, GWSA, to
Culina Group Limited ("Culina") for an undisclosed consideration
(the "Transaction") and LDG has consented to the Transaction
pursuant to the Marcelos shareholders' agreement.
LDG expects to receive a net cash inflow of not less than GBP120
million, including repayment of the recent GBP6million investment
in the PIK loan. On that basis, LDG's available cash will be not
less than GBP127 million. As at 30 November 2020, the fair value of
LDG's investment in Marcelos was GBP35.8 million.
LDG and DBAY Advisors Limited ("DBAY"), its co-shareholder in
Marcelos , concluded that the offer by Culina represented a unique
opportunity to realise investor value from the successful
management-led return to profitability achieved by GWSA since the
2019 refinancing by DBAY. As reported in LDG's 2020 Annual Report,
for the year ended 30 November 2020 GWSA had group revenue of
GBP874.3 million and an EBITDA (excluding the impact of IFRS 16) of
GBP47.8 million.
The board of LDG and its investment manager DBAY continue to
believe that the current post-Covid19 lockdown environment
continues to offer many opportunities in line with its investment
policy and intend to apply the substantial cash funds generated for
LDG from the Transaction to create more value for shareholders from
new investments.
Adrian Collins, Chairman of LDG said : "The board of LDG would
like to thank William Stobart and his management team for their
successful efforts to streamline and refocus the business. We are
proud they have been able to do so during very challenging times.
We are confident that the Culina Group will be a good home for the
business and its staff. Looking ahead, we now have substantial
resources to invest in new opportunities and we look forward to
working with our investment manager DBAY to identify investments
that will create further value to shareholders."
For enquiries:
Logistics Development Group Via FTI Consulting
plc
FTI Consulting
Nick Hasell
Alex Le May +44 (0) 20 3727 1340
Strand Hanson Limited
(Financial and Nominated Adviser)
James Dance
James Spinney
Georgia Langoulant +44 (0) 02 7409 3494
Investec Bank plc
(Broker)
Gary Clarence
Harry Hargreaves +44 (0) 20 7597 5970
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS DEFINED IN
ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 ("MAR") WHICH
IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT
2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE
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