23rd Jun 2014 09:36
LONDON (Alliance News) - Floorcoverings company Victoria PLC saw its shares rise strongly Monday after it said it would pay a special dividend of GBP2.92 a share as part of a proposed deal that will see Camden Holdings Ltd take a 50% stake in the company.
Camden Holdings is owned by The Camden Trust. Victoria Chairman Geoff Wilding is the settlor and a discretionary beneficiary of the trust.
In February, Victoria took out a contract for difference with Camden Holdings. The payment of the special dividend will entitle Camden to terminate the contract, meaning that Victoria would be obliged to pay out in cash. However, Camden has agreed to re-invest the whole amount back into Victoria, it said, without detailing the amount.
The UK Takeover Panel has agreed to waive the normal rule that Camden would have to make a takeover offer for the whole of Victoria for taking a 50% stake in the business, Victoria said.
Shareholders will be asked to vote on the proposals at a general meeting on July 9.
"We are delighted to be proposing a special dividend to shareholders and further that Camden has conditionally agreed to subscribe for shares in the company. We therefore recommend that shareholders vote in favour of all resolutions at the General Meeting," Andrew Harrison, senior independent non-executive director of Victoria said in a statement.
Victoria shares were up 18.2% Monday morning, one of the biggest gains on the AIM All-Share index
By Steve McGrath; [email protected]; @SteveMcGrath1
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