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Zetar
- BY: Andrew Hore |
- POSTED: 01/05/2009 |
Confectionery and snacks supplier Zetar has sold the Baked Snacks Company for £2m less than it paid two years ago.
The business was acquired in May 2007 for £4.7m. The chief executive of the low fat crisps and biscuits supplier is paying an initial £590,000 to Zetar to buy the subsidiary. The deferred cash consideration is up to £2.091m. This can be reduced by £225,000 if an unspecified amount of the deferred consideration is paid before the end of January 2010.
The deferred payments are partly secured by a debenture over plant and machinery and personal guarantees from the buyer Mobeen Mehdi. Zetar also owns 49% of the company buying the business. This will be sold to Mehdi for a nominal sum as long as £1.3m of deferred payments are made.
The business lost £900,000 on revenues of £2m in the year to April 2008. In the six months to October 2008, the loss was £800,000 on revenues of £1.5m.
The cash will be reinvested in the rest of the group. Zetar raised £2.1m gross (£2m) at 120p a share in February 2009. That cash was raised at a 23% premium to the market price. More than half of the shares were bought by directors and the original backers of the shell company Marwyn.
The shares rose 15p to 110p each on the news of the disposal, valuing Zetar at £14.6m.
Zetar will issue a trading statement in early May 2009.
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