Business
Disposal of Wavespec
Disposal of Wavespec.
About this update from Braemar Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2180U\n Braemar Shipping Services PLC\n 01 April 2021\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n 1 April 2021\n \n \n \n \n \n THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU NO. 596/2014) WHICH IS PART OF UK LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n \n \n \n \n BRAEMAR SHIPPING SERVICES PLC\n \n \n (\"Braemar\", the \"Company\" or the \"Group\")\n \n \n \n \n \n Disposal of Wavespec\n \n \n \n \n \n Braemar, a leading international Shipbroker and provider of expert advice in shipping investment, chartering and risk management, is pleased to announce that it has completed the disposal of its Wavespec business (\"Wavespec\") to Wavespec Holding BV (the \"Buyer\") for a total consideration of £2.635 million (the \"Disposal\"). Wavespec was the Group's Engineering division and its disposal is in line with the Group's new strategy that is centred on its core Shipbroking business. \n \n \n Wavespec provides engineering and other expert consultancy services and solutions to the gas processing, liquefied gas, and marine industries. For the year to 29 February 2020, Wavespec generated revenue of £3.1 million and an underlying operating loss of £1.4 million. Wavespec will be treated as a discontinued operation for the year ended 28 February 2021 and the total reported loss is estimated to be around £2.4 million made up of a trading loss of £1.7 million and an estimated loss on disposal of £0.7million. Wavespec's gross assets, as at the last reported balance sheet date of 31 August 2020 were £0.5 million.\n \n \n The £2.635 million gross consideration has been satisfied by the issuance of a promissory note with a maturity date of 31 March 2026 (the \"Note\"), which is currently expected to be retained by the Company. The disposal agreement contains an obligation for the Buyer to secure the Note by providing a standby letter of credit issued by an international bank with an acceptable credit rating. Should they fail to deliver such a letter of credit, Braemar can elect to receive a sum of cash of £0.5 million from the B...