DCC makes £5m on disposal of Heiton shares

DCC has sold its 25 per cent shareholding in Heiton at a premium, making a profit of over £5 million. DCC is likely to use the money to buy out the minority shareholders in several of its subsidiary companies.

The Heiton equity was sold for £11.4 million, making a profit on cost of £5.1 million and a profit over book value of £4.1 million.

DCC's holding of 11,388,463 shares was placed through Davy stockbrokers at a 5 per cent premium of loop a share. They closed on Monday at 95p and yesterday at the placing price of 100p.

Market sources said foreign institutions picked up 75 per cent of the shares, most for the first time. "The fact that they managed to attract international interest is a good sign," one dealer said.

Heiton's profit before tax for the year to April 30th, 1995, was £4 million and its net assets at that date were £28.5 million.

Mr Jim Flavin, chief executive of DCC, said the "excellent profit" would increase DCC's capacity to build its position in its core business areas.

DCC's share price remained unchanged at 248p.

Mr Richard Hewat, managing director at Heiton, said he welcomes the increased liquidity in the shares. "We're also very happy that the share price has gone through loop in our centenary year," he added.

Last week, Mr Flavin said he would consider spending as much as £67 million on acquisitions and capital programmes this year, the same as last year.

In the short term, DCC plans to increase its stake in the Robert Roberts and Kelkin food distribution from 80 per cent to 100 per cent and Micro P from 87 per cent to 89 per cent.

The company is also looking at "fill in" acquisitions in its computer services business in Britain and will be looking at opportunities in Europe. Shareholdings in non core businesses such as Capco and John Hinde will eventually also be sold off.