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IN BRIEF: Stobart Divests Rail & Civils Division Amid Losses

14th Jul 2020 20:14

Stobart Group Ltd - the civil engineering company - Says its wholly owned subsidiary Stobart Holdings Ltd has divested of Stobart Rail Ltd - which owns the Rail & Civils division - to Bavaria Industries Group AG for an initial cash consideration of GBP1,000. An additional cash consideration of up to GBP2.9 million may be received based on the outcome on conclusion of a single legacy contract. This follows the commitment made by Stobart to exit the Rail & Civils business by the end of its financial 2021, following the continued losses within that business. The agreement is on a debt free basis including the waiver of intercompany balances involving Stobart Rail.

Current stock price: 28.60 pence

Year-to-date change: down 74%

By Evelina Grecenko; [email protected]

Copyright 2020 Alliance News Limited. All Rights Reserved.


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