Peel’s paper profit on Pinewood soars
THE two parties who grabbed significant stakes in studios business Pinewood Shepperton have made a healthy paper profit on their investment.
Property group Peel’s 200p per share takeover offer for the company which concluded last July valued the company at £96.1m, although it did not gain control of enough shares to allow it de-list since Stockport-based Warren James Jewellers also secured over 25% of the business.
However, since too few shares remained in public hands, stockmarket rules have meant the company has had to move from London Stock Exchange’s main market onto its junior Alternative Investment Market.
Approval was gained from shareholders to do so this morning, and to raise an extra £5.4m through the issue of new shares in the company (a move initially announced in May).
Although this dilutes the shareholding of Peel and Warren James Holdings from 71.1% and 27.9% respectively to 67.9% and 26.7%, the anticipated AIM issue price of 250p would give Pinewood Shepperton a market capitalisation of £170m.
The shares are due to be admitted to AIM on July 23 following a cancellation of the company’s main market listing on July 20.
Since the purchase of Pinewood Shepperton last year, the firm has had to contend with losing a public inquiry relating to the Project Pinewood proposal to build a £200m housing scheme on land next to the studios, causing a £7.1m writedown in its value which wiped out profits in a 15-month trading period to March 31, 2012.
However, it has also successfully completed a £50m refinancing with its lenders and has announced that it is in talks with the Isle of Man to manage a £25m media development fund on its behalf.
