A Uniq pension deal

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Related tags: Stock market, Uniq

Uniq ceo Geoff Eaton
Uniq ceo Geoff Eaton
Uniq today received court sanction for its novel 'pension deficit for equity swap', which will see the firm's shares delisted from the main market and relisted on the AIM on April 1.

The High Court today sanctioned the scheme whereby Uniq will hand over 90% of its shares to its pension scheme; in return the chilled food group’s £400m+ (£473m as of July 31 2010) pension scheme deficit will be wiped out.

Since main market rules demand that 25% of a firm’s shares are quoted, Uniq will relist itself on the AIM (Alternative Investment Market) from April 1.

According to the Financial Times, the firm can expect a tenfold increase in its share price (which closed last night at 6.18p) as a result of the move, with its market capitalisation of around £9m boosted accordingly.

The prospect of this uplift has already won over reluctant shareholders​, and in mid-February Uniq ceo Geoff Eaton said the deal was the “only viable way of enabling shareholders to achieve some value for their shareholdings in the company”​.

Moreover, Eaton added, Uniq's bank had told​the board that if the deal did not proceed, it would not provide the firm with a new loan facility.

Employing around 2,200 staff, the company has four factories in Minsterley (desserts), Spalding (salads), Evercreech (desserts) and Northampton (sandwiches and wraps).

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1 comment

Unique indeed...

Posted by Woolly,

See Woolly's blog for commentary on how deals of this nature might affect shareholder value.


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