Business
Sale of holding in BF&M Limited
Sale of holding in BF&M Limited.
About this update from Camellia Plc
[{"type":"text","content":"\n\n6 June 2023\nCamellia Plc\n(the \"Company\" or \"Camellia\")\n \nSale of holding in BF&M Limited (\"BF&M\")\n \n \nCamellia is pleased to announce it has entered into an agreement for the sale of its entire holding of 3,394,403 shares (approximately 36.9%) in BF&M, one of its associate companies, to Bermuda Life Insurance Company Limited, a subsidiary of Argus Group Holdings Limited for a cash consideration totalling US$100.0 million (approximately £80.4 million), a premium of 34% to the closing price of a BF&M share on 5 June 2023 and a premium of 31% to the book value of Camellia's holding as at 31 December 2022. Any special dividend declared and paid by BF&M (if any) between the signing of the agreement and completion will be deducted from the cash consideration. This sale represents a further step in Camellia's policy of divesting non-core assets.\n \nThe disposal is conditional on the satisfaction of certain conditions, including regulatory and tax approvals and notifications in a number of jurisdictions, and the satisfaction of customary conditions precedent. Subject to the satisfaction or waiver of these conditions, completion is expected in Autumn 2023.\n \nIt is possible that taxes and/or fees may become payable in securing the necessary pre-closing approvals and notifications although such amount cannot be determined until the required applications have been submitted. If Camellia's share of such items exceeds agreed thresholds then the Company has the ability to terminate the contract should it so wish. The purchaser has the same termination right in respect of their share of such costs.\n \nWhilst completion of the transaction is not expected until Q4 2023 and therefore the exact use of proceeds may vary depending on circumstances between now and completion, the receipt of the funds realised by this sale, together with funds raised from the disposal of other non-core assets, will enable the Company to accelerate its development programme and continue to diversify its agricultural production by crop and geographic location. The Board considers Camellia's shares to be significantly undervalued and, in the event of any surplus funds arising, will also therefore consider the merit of returning these to shareholders by means of a share buy-back. The Company...