UK: GNE Sells Petrol Express st£51.6m
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Friday, 19 September 2008 |
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Petrol station operator GNE Group Plc this week said it has agreed to
sell its main operating unit to an RBS-backed investment group for
£51.6m , sending its shares up 62 percent in early trade.
The company, formerly Global Natural Energy Plc, plans to pay a dividend of 150 pence after the completion of the sale of the Petrol Express Ltd unit to Leopard No. 2 Investments Ltd. GNE's Petrol Express is an independent petrol-station operator in the UK, operating 63 stations which trade under the BP, Texaco and Esso brands.
David Port, Executive Chairman of GNE Group plc, said: “Since 2006 the Group has developed the business and assets of PEX, improved the trading, increased profitability and improved the quality of the petrol retailing sites. In addition new sites have been acquired and underperforming sites have either been disposed of or redeveloped for the benefit of GNE. The proposed disposal represents excellent value for shareholders which together with the intended dividend provides a way of returning a substantial cash sum to Shareholders whilst simultaneously maintaining an investment in the Company.”
Leopard No. 2 Investments Limited is a special purpose company incorporated in Scotland for the purpose of acquiring Petrol Xpress. The GNE Directors understand that Leopard is owned by eight individuals, all of whom are resident in the United Kingdom. The Directors also understand that Leopard is backed by RBS and is proposing to satisfy the Purchase Price substantially by way of debt financing from RBS but also with cash received for its equity.
The proposed disposal is subject to shareholders voting in favour of the Disposal Resolution at the General Meeting on 7 October 2008 and the Company putting in place an internal reorganisation.
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