Irish Continental Group plc : Disposal of Subsidiary
Irish Continental Group plc
Irish Continental Group plc announces the sale of container shipping subsidiary, Feederlink Shipping & Trading b.v.
30 August 2012
Irish Continental Group, plc ("ICG") announces that it has entered into an agreement for the sale, subject to certain conditions, of its container shipping subsidiary Feederlink Shipping & Trading b.v. ("Feederlink") to leading Danish asset light logistic company Unifeeder A/S.
Feederlink, which was incorporated in 1993, provides container shipping services on routes between the port of Rotterdam and the East Coast of the UK, utilising a fleet of time chartered vessels. In 2011 Feederlink carried 138,500 teu (twenty foot equivalent units).
The consideration is payable in cash in four tranches, €20 million on closing, and up to €9 million in three tranches, deferred up to 12 months after closing, conditional on certain conditions being met during the 12 months. The proceeds will be used for general corporate purposes.
Feederlink is being acquired on a debt free/cash free basis. The gross assets of Feederlink as at 30 June 2012 (excluding cash), were €3.3 million. In the year to 31 December 2011, Feederlink recorded revenue of €21.6 million and profit before tax of €1.8 million.
The transaction is subject to regulatory approval and to no material adverse change affecting the business prior to closing.
The current management team of Feederlink, led by Rob Mulder and Ingrid Van Mil, will continue in managerial roles in the combined entity.
Eamonn Rothwell Chief Executive Officer
Garry O' Dea Finance Director
+353 1 607 5628
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