Welney Closes Sale of Aircraft Recycling, Blaze and Barney Interests.
M2 EQUITYBITES-June 22, 2015-Welney Closes Sale of Aircraft Recycling, Blaze and Barney Interests
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22 June 2015 - UK-based holding company Welney Plc has completed the disposal of its interests in Aircraft Recycling Ltd and Blaze and Barney Ltd., the company said.
On 2 June 2015, Welney announced that it was in advanced discussions regarding the proposed disposal.
The company acquired a 30% interest ARL and the issued share capital of B/B, whose sole business was the operation of a horizontal baling machine for recycling, in February 2014.
Welney said that the total consideration for these acquisition involved the payment of GBP 230,000 in cash to the vendors of the businesses and the issue of 234.5m ordinary shares in the company at an agreed value of GBP 58,625.
The company said that, towards the end of 2014 it became clear that the operation of the baling machine was not going to be commercially viable for the company.
At around the same time, the directors became aware that the funds required to develop ARL's recycling business could not be raised. In addition, the contract that ARL was expected to fulfil with a major airline was never started.
The directors therefore resolved to dispose of the company's interests in ARL and B/B and focus the company's business on the recycling of rubber and plastics.
Hugs General Trading LLC has acquired the 234.5m ordinary shares in the company originally issued to the vendors.
Following this acquisition, HGT is interested in shares representing 15.17% of the company's issued share capital and the vendors no longer have any interest in the company; and
The vendors have agreed to acquire B/B and the company's interest in ARL for a consideration of GBP 50,000 which has been paid to the company in cash.
Welney also said that Peterhouse Corporate Finance Ltd. has given notice of its intention to resign as the company's ISDX corporate adviser, such notice to expire on 30 June 2015.
The company is in discussions with a replacement ISDX Corporate Adviser and expects to make a further announcement in due course.
Welney was established to make acquisitions in the field of electric vehicle technology and distribution.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Jun 22, 2015|
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