28th Sep 2015 07:20
LONDON (Alliance News) - FTSE 250-listed investment vehicle Caledonia Investments PLC said on Monday it has sold its majority stake in TGE Marine AG for EUR106.9 million in cash.
Caledonia said it has sold the stake in TGE Marine, a cryogenic gas markets support services company, to MES Germany Beteiligungs GmbH, a wholly-owned unit of Mitsui Engineering & Shipbuilding Co Ltd, the Japanese group.
Caledonia will get EUR106.9 million in cash, net of transaction costs, plus a pre-transaction dividend payment of EUR7.6 million, for its 67.9% stake in the business. The addition of the dividend takes the total value of the sale for Caledonia up to EUR114.5 million.
The deal is expected to complete on October 1 and the proceeds will be held on deposit for future investment, Caledonia said.
"We believe that TGE is a strong strategic fit for MES' growing offshore energy services business. We are delighted that Caledonia's long term, supportive investment approach has both contributed to the development of TGE and delivered good returns for our shareholders," said Duncan Johnson, head of unquoted investments at Caledonia.
Shares in Caledonia were up 1.2% to 2,173.65 pence on Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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