Investors set for pay out as Pinewood mulls sale
PEEL, the Manchester-based property investment group and privately-owned Stockport jewellery company Warren James could be in line for bumper payouts after Pinewood Group launched a strategic review, which could lead to a sale.
Shares in the company surged 16% or 73p to 522.85p on the news.
Peel subsidiary Goodweather Investment Management is the largest shareholder in the famous studios, where the James Bond and Star Wars films are made, with a 39.09% stake.
Warren James Holdings, the company owned by siblings Ann Jones and John Coulter, owns 14.9 million shares in the group, equivalent to around 26% of Pinewood’s shares.
In a stock market announcement the AIM-listed company said it was looking to “maximise value” for investors.
Corporate finance advisers from investment bank Rothschild have been appointed to lead a strategic review of the company’s capital base and structure.
Pinewood said that a successful share placing last year to raise proceeds for its expansion had failed to gain enough new investors and diversify its shareholder base, stifling its ambitions.
It made the announcement at the same time as raising its annual profits guidance, saying expectations for the year to 31 March had been boosted by stronger revenues since the release of its half-year results in December.
Pinewood said that because its shareholder register was “tightly held” its ambition for a main market listing was being held back.
It confirmed its options included a possible sale of the business, which includes Pinewood Studios in Buckinghamshire, as well as Shepperton Studios and Pinewood Studio Wales.
It also has an international network of studios in countries including Canada and the Dominican Republic.
Its share placing last year raised £30m for phase one of its Pinewood Studios Development Framework, aimed at adding 300,000 square feet of new facilities including five new sound stages.
Expansion at Pinewood in Buckinghamshire has proved problematic in the past because of local opposition.
Chief executive Ivan Dunleavy said: “We believe Pinewood has the potential to build on the strong performance of the last few years to grow further both in the UK and internationally.
“The board is now looking to identify the best ways to create the appropriate capital structure to allow the company to realise its goals in the best interests of shareholders.”
