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Stobart plans buy out of remaining 50% of Biomass JV from AW

28th April 2011, Page 6
28th April 2011
Page 6
Page 6, 28th April 2011 — Stobart plans buy out of remaining 50% of Biomass JV from AW
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STOBART GROUP IS to restructure its business in a move that will see it buy out the remaining 50% of the Biomass joint venture it has with fellow Cumbrian operator AW Jenkinson for £20m.

AW Jenkinson owner Allan Jenkinson will join the Stobart Group board of directors, which recently saw William Stobart and James Irlam leave, and is set to net £1m on completion of the deal.

From 16 May (should the deal go ahead), the Stobart Group will comprise of ive divisions: transport and distribution (the Eddie Stobart business headed by William Stobart); airports; infrastructure management; biomass and estates (which sees a property irm owned by Stobart and chief executive Andrew Tinkler – Moneypenny – folded into the group).

The deal and restructure comes as the irm looks to raise £120m via a new share placing on the London Stock Exchange. Stobart Biomass Products was formed in March 2010 to source and distribute supplies of biomass fuel at the same time as Eddie Stobart signed a 10-year transportation contract with AW Jenkinson. In the nine months to 31 December 2010, it generated revenues of just £506,000 and a proit of £4,700.

Tinkler says: “The restructuring will clarify and sharpen the focus, strategic aims and values of each part of the business.”


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