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Summary
- Melrose sold a stake in the Nortek Air Management business.
- Studio Retails divested stake in Findel.
- ITM’s partner Linde has bought the stake in ITM’s in electrolyser and supporting equipment.
Three UK-based companies, including Melrose, Studio Retail Group plc and ITM Power, were in the news for their respective disposals of assets. Let us delve deep into the transactions of these companies.
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Melrose Industries
Melrose Industries (LON:MRO) has signed a deal with Chicago-based Madison Industries to sell its Nortek Air management business for £2.62 billion ($3.625 billion) in a cash transaction.
The deal comprises the disposal of Nortek Global HVAC (GHVAC) and Air Quality Homes Solutions (AQH) is subject to certain adjustments. Melrose will be utilising the proceeds to reduce its debt by £100 million.
Justin Dowley, chairman of Melrose, said:
MRO scrip was trading at GBX 165.45 each on LSE, down by 3.02 per cent on Tuesday at 8:35 AM GMT+1. The stock has given a return of over 82 per cent in last one year.
Studio Retail Group
The Studio Retail Group Plc (LON: STU) is divesting its stake in Findel Education Ltd to West Moorland 221 Ltd for £30.0 million on a debt free-cash free basis.
Findel is a newly formed company and is owned by Endless LLP. The company will use the money to make a voluntary payment to its defined benefit pension fund of £9.0 million. The remaining funds will be utilised for removing the group’s net debt.
Commenting on the deal, Paul Kendrick, CEO of SRG:
Findel supplies equipment and resources to school in the UK and overseas. As of September 2020, the company had net assets of £17.2 million.
STU's shares were trading at GBX 301.50 each, unchanged at its previous closing on LSE on Tuesday at 8:34 AM GMT+1. In the last one year, the stock has given a return of over 52 per cent.
Linde and ITM deal
ITM Power Plc’s (LON: ITM) partner Linde has bought its HGas3SP (2MW) electrolyser and supporting equipment for the H2Pioneer project in Austria.
The key objective of the H2Pioneer project is to highlight that green hydrogen can be produced on-site and used in semiconductor manufacturing, largely replacing the supply of liquified hydrogen delivered in trailers.
Commenting on deal, Graham Cooley, ITM Power CEO, said: “We will work very closely with our key partner Linde, and it is pleasing that this first sale to Austria also takes us into a new industry."
ITM Share was trading at GBX 475.60 per share, up by 0.38 per cent at 8:31 AM GMT+1 on LSE on Tuesday. In the last one year, the stock has given a robust return of over 216 per cent.
