6th Jun 2023 13:09
Camellia PLC - Kent-based agriculture and engineering services - Sells its entire 37% stake in BF&M Ltd to Bermuda Life Insurance Co Ltd, a subsidiary of Argus Group Holdings Ltd, for USD100.0 million. BF&M is a Bermuda-listed insurance group operating in Bermuda and the Caribbean. It has life insurance and general insurance arms. BF&M swung to a loss in 2022 and its "volatile" results have caused Camellia to consider the investment "beyond its risk appetite". The stake was carried on Camellia's books at December 31 at a value of GBP61.5 million, so the sale is expected to generate a gain on disposal. Argus Group is a Bermuda-listed multi-line insurer and financial services firm.
Camellia says the disposal won't complete until the fourth quarter, and it will decide on the use of the proceeds in the interim. This could be invested to diversify its agricultural production by crop and geography, or returned to shareholders. "The board considers Camellia's shares to be significantly undervalued and, in the event of any surplus funds arising, will also therefore consider the merit of returning these to shareholders by means of a share buy-back," it says.
Current stock price: 6,199.00 pence, up 26% on Tuesday afternoon in London
12-month change: down 0.4%
By Tom Waite, Alliance News editor
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