(Adds more detail)
LONDON (Thomson Financial) - Blueheath Holdings PLC said it will acquire
cash and carry operator Booker Group via a reverse takeover of the target's
holding company Giant Topco Ltd, through the issue of around 1.34 mln shares.
Following the merger, which will create the UK's largest food wholesaler
with yearly sales topping 3 bln stg, Giant Topco shareholders will own 90.01 pct
of the enlarged share capital of Blueheath. A company release said the enlarged
group will benefit from improved cash management and cost synergies through
sourcing and logistics as well as central and financing costs.
Blueheath chairman Richard Rose will continue as chairman of the enlarged
group, to be named Booker Group PLC, while Booker CEO Charles Wilson will be
chief executive officer of the new company, bringing with him finance director
Jonathan Prentis who will act as CFO.
The release from Blueheath also said it has continued to trade in line with
management expectations since the last update on Jan 26, while Booker is
expected to report operating profit before goodwill and exceptions of not less
than 39 mln stg on sales of at least 3 bln stg in the year to end-March.
The payment of a dividend in the current year depends on the availability of
distributable reserves and a final decision on the level of contributions to the
enlarged group's pension schemes. However, the release said both boards view the
enlarged group's trading and financial prospects with confidence.
The enlarged group will apply for admission to trading on AIM on June 4.
Blueheath and Booker will announce their full-year results for the in the two
weeks following admission. The company will then change its year-end to conform
with that of Booker Holdings.
TFN.newsdesk@thomson.com
ran/vlb
COPYRIGHT
Copyright AFX News Limited 2007. All rights reserved.
The copying, republication or redistribution of AFX News Content, including by
framing or similar means, is expressly prohibited without the prior written
consent of AFX News.
|