On 21 September 2017 MMH announced the strategic disposal (“Disposal”) of the Group’s wholly-owned leasing segment, Marshall Leasing Limited (“MLL” or “Marshall Leasing”) to N.I.I.B Group Limited (which trades as ‘Northridge Finance’), a wholly owned subsidiary of Bank of Ireland (UK) plc for a gross cash consideration of £42.5m.
Completion was subject to regulatory approval from the Financial Conduct Authority which has now been received and Marshall Motor Holdings PLC (LON:MMH) has confirmed that the transaction has completed today.
As previously announced, the Board believes the Disposal provides an opportunity to create greater long term value for its shareholders by allowing MMH to focus on its core motor retail business. The Group will continue to focus on its successful strategy of driving both organic growth and increasing UK geographic footprint through targeted acquisitions with existing brand partners.
Completion of the Disposal has also further strengthened the Group’s balance sheet, with the net cash proceeds being initially used to reduce existing levels of indebtedness (actual reported net debt as at 30 June 2017: £101.1m). As a result of the Disposal, the Group’s pro forma balance sheet as at 30 June 2017 would have been ungeared, with net cash of approximately £4.6m and net assets of 254p per share.
Daksh Gupta, Chief Executive Officer commented:
“The strategic disposal of our leasing business is an important step for MMH as it has de-geared the Group’s balance sheet and allows us to remain focused on driving our core retail operations. I am particularly pleased that MMH has an ongoing relationship with MLL for the supply of new vehicles and we look forward to supporting the continued growth of MLL under its new ownership”