13th Nov 2015 08:24
LONDON (Alliance News) - All Leisure Group PLC Friday said its subsidiary All Leisure Holidays Ltd has entered into a conditional agreement for the proposed sale and leaseback of the Hebridean Princess cruise vessel and certain related assets to HP Shipping for GBP2.9 million in cash.
HP Shipping is a new company which on completion will become wholly owned by a syndicate of private investors led by All Leisure Chairman Roger Allard.
The Hebridean Princess is a five-star cruise vessel which can carry 50 passengers, typically operating tours around the west coast of Scotland and the Outer Isles, and occasionally to Northern Island, Norway and the Channel Islands.
The tour and cruise operator said the transaction will provide important additional liquidity to the group, while making it less asset-intensive but still retaining the business of the Hebridean Island Cruises division.
HP Shipping will lease the assets back to All Leisure for a fixed rate of GBP500,000 per year, under a lease term expiring on December 31, 2023. All Leisure will also share customer data with HP Shipping for GBP100,000 in cash, and will have a call option to repurchase the assets for two years after completion.
The Hebridean Island Cruises division contributed approximately GBP2.1 million to group net profit for the year ended October 31, 2014.
The transaction is expected to complete on November 30.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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