NFC votes to float
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• The National Freight Consortium's tycoon shareholders voted overwhelmingly this week to float their company on the 'stock market.
Over 3,500 of the 35,000 owner-employees and their families — some of whom have made up to 2250,000 since the NFC became worker-controlled — backed the move at their annual general meeting in Blackpool on Sunday. The board will now apply for listing on the stock exchange by way of an introduction some time in the next two years, and will raise up to 2100 million through a rights issue.
NFC chairman Sir Peter Thompson explained that this would allow employees to keep their shares and retain the consortium's image as a "family company". One shareholder warned, however, that cityslickers were "waiting to make a quick buck and then sell their shares again".
NFC — Britain's largest transport group — was bought from the Government by its employees in 1982 for a knockdown 27 million. This year it is forecasting total profits of 261.7 million.
Polls showed that over 50% of respondents were in favour of flotation, but the strength of the vote on Sunday must have surprised even the most optimistic of NFC's board members: fewer than 50 delegates rejected the proposal.
The company plans several defences against any future outside buyout. These include: O A profit-sharing scheme for employees which would encourage them to keep their shares: O Interest-free loans for worker share purchases; • Double voting powers for employees; An introduction rather than an offer for sale on the stock market — this avoids extensive publicity. The NFC is in "confident and swaggering mood", chief executive John Mather said. Profits in the first quarter of 1988 are up almost £4 million on the same period last year, and operating profits overseas — NFC recently bought US removals giant Allied Van Lines — could rise by 50% this year.
The company was now "truly global", overseas chief Ted Wall told shareholders at the general meeting.