28th Oct 2014 09:49
LONDON (Alliance News) - MJ Gleeson Group PLC on Tuesday outlined proposals for the restructuring of the company, focusing on a spin-out of its building contracting and engineering businesses into a new company.
The group said its proposals would involve the creation of a new parent company and a reorganisation of the business which would see its building contracting and engineering arms, operated by MJ Gleeson and its MJ Gleeson Construction Services units, separated from its ongoing and core operations.
The company said it believes the plans would ensure potential future creditors of the construction business would be "provided for on a prudent and reasonable basis".
The group said the proposals would involve the insertion of the new company as the parent company above the existing business under a scheme of arrangement and a capital reduction.
MJ Gleeson said the plans are subject to the approval of shareholders, along with a court meeting and general meeting. It is set to distribute a circular on the plans to shareholders on or around November 4.
If the scheme gains shareholder approval, it would become effective from December 18.
MJ Gleeson shares were down 1.9% to 333.53 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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