3rd May 2005 07:00
C.I. Traders Limited30 April 2005 30th April 2005 C.I. Traders Limited - Press Release C.I. Traders Limited, an AIM listed company based in the Channel Islands,announces that it has acquired the Safeway store in Guernsey and in Jersey froma Guernsey subsidiary of Wm. Morrison Supermarkets PLC. The Safeway stores tradeas edge of town supermarkets. C.I. Traders acquired Safeway Stores (Guernsey)Ltd and Safeway Stores (Jersey) Ltd via a wholly owned Guernsey subsidiary on30th April 2005. The effective date of the sale and acquisition is close ofbusiness on 30th April 2005. The purchase price for the acquisition is £51 million, subject to movements inother net assets between 30th January and 30th April 2005. The consideration ispayable in cash, funded from existing and additional bank facilities. In the 47weeks ended 30th January 2005, the two companies being purchased had aggregateturnover of £46.8 million, operating profits of £2.6 million and net assets of£2.6 million as at 30th January 2005, excluding cash and inter-companyindebtedness. The store in Guernsey is on a freehold site of around 5.25 acres, whilst that inJersey is held under a lease expiring in 2114, with a rent at one-quarter of thecurrent open market rate until 2022. The two stores have been independently valued as at the disposal date at acombined sum of £53 million. C.I. Traders views them as complementary to itsexisting retailing operations in the Channel Islands. C.I. Traders intends to continue to operate these stores under their existingtrading names, Safeway of Guernsey and Safeway of Jersey, but will be developinga new distinct logo which will be agreed with Wm. Morrison by the end of July2005. These businesses in the Channel Islands were acquired by Safeway fromChannel Island resident Mr M D Besant some 12 years ago and will now revert tolocal ownership. In developing the Jersey and Guernsey stores as a separate strand of theirretail activities, C.I. Traders will assume responsibility, under their presentterms and conditions, for all 400 employees of both the Channel Islands'companies being acquired. The 15 Safeway secondees from the UK mainlandcurrently working in the Channel Islands will be fully consulted regarding theirfuture careers and will provide managerial services to C.I. Traders in the shortterm. Unless offered employment in the Channel Islands by mutual agreement, theywill return to other employment within Wm. Morrison Supermarkets PLC in duecourse. - ends - Contacts: Tom H Scott, Executive Chairman 01534 508200 Martin Bralsford, Chief Executive 01534 508200 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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