News blog
GNE
- BY: Andrew Hore |
- POSTED: 18/09/2008 |
GNE is selling its Petrol Express subsidiary and paying a special dividend of 150p a share.
The share price jumped 49p to 172.5p. Management wants to repeat its achievement by building up another petrol retail chain.
The company buying the business is backed by eight UK individuals including Alasdair Locke, who built up oil services company Abbot Group until it was acquired in March 2008. He remains with that business and took some of the proceeds from the sale in shares and the rest in cash.
The purchaser is paying £51.66m for Petrol Express. That includes the assumption of £15m of borrowings. After debt and costs the deal is worth £34.5m. GNE’s management believes that the deal values the group at 282p a share, which is more than the estimated NAV of 171p a share.
At the end of 2007 the company had a net tangible asset value of 156p a share and net debt of £10.9m. It has made an acquisition since then.
The 150p a share special dividend should be paid by the end of January 2009.
GNE will retain £15m in cash, its fuel card business and some property. It will reinvest the cash in more petrol stations. It is particularly interested in properties with redevelopment potential.
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