23rd Jul 2018 11:40
LONDON (Alliance News) - Better Capital PCC Ltd 2012 Cell shares soared Monday as the company said it gained permission to sell aerospace parts manufacturer Northern Aerospace Ltd.
Shares in the cell were trading up 20% at 30.50 pence each.
The company said UK Secretary of State for Business, Energy & Industrial Strategy Greg Clark confirmed that "no public interest consideration" is relevant in the transaction, which will be completed on, or before, Tuesday.
Earlier in June, Clark raised a public interest intervention notice on a "public interest ground of national security" and launched an investigation in the sale.
In the meantime, the UK Competition & Markets Authority - a monopoly regulator - issued an initial enforcement order, meaning as it was looking to review the acquisition and its effects on competition, it requires the firms to pause further integration of the businesses.
Earlier this month, Better Capital 2012 had said that the sale of the Northern Aerospace to Gardner Aerospace Holdings Ltd had fallen through, as it could not obtain permission from the CMA in time for the deadline.
The investor said it had been advised that there were "national security issues" but said it was ignorant as to how the sale, which would have been worth GBP44 million to Better Capital 2012, could give rise to any national security concerns.
Upon gaining approval Monday, the company noted that proceeds from the transactions are "materially in line with the current net asset value of GBP60 million".
Northern Aerospace is Better Capital 2012's largest holding, making up 35% of its portfolio.
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