LONDON (Alliance News) - Caledonia Investments PLC Tuesday said that it has sold its entire stake in Oval Ltd to Gallagher & Co in a deal which values Oval at GBP210 million, as well as its stake in The Amber Chemical Company Ltd to ICM Corporation Inc.
The UK-based self-managed investment trust company said it sold its 25.4% stake in Oval Ltd, the UK insurance broking and financial services provider, to Friary Intermediate Ltd, a wholly owned subsidiary of Arthur J. Gallagher & Co, as part of the acquisition by Gallagher of the entire Oval group. It got GBP70 million for the stake and repayment of outstanding loan notes and accrued interest.
The group also said it sold its stake in speciality silicones business The Amber Chemical Company, to ICM Corp, a US based silicones business backed by Century Park Capital Partners.
It said that it realised GBP23 million from the sale, representing a premium of more than 50% on Caledonia's book valuation of Amber at September 30, 2013, of GBP15.2 million. That's on top of the GBP19.5 million of capital and dividend receipts that Caledonia has realised from Amber since December 1, 2010.
Shares in Caledonia Investments were trading 3.1% higher Tuesday afternoon at 1,983.00 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Caledonia (CLDN)