INDUSTRIAL holding group DCC has sold its 9.4 per cent stake in Greenway Holdings, a British publicly quoted oil recycling company, for £4.1 million.
The cost of the investment was £2.9 million and is valued in DCC's balance sheet at £4 million. The sale is earnings neutral.
Last May, when the investment was valued at £8 million, DCC said it had no intention of selling the stake which was viewed as a "long term investment".
However, Mr Jim Flavin, DCC's chief executive and deputy chairman, yesterday said "After a review of DCC's development priorities, we concluded that the sale of DCC's share holding in Greenway was appropriate. The funds realised increase DCC's financial capacity to build its position in its core business areas."
Since May, Greenway prospects have deteriorated and this has been reflected in the drop in the share price. Its interim profits showed a decline and the market expects profits of £750,000 sterling in the year to end March 1996 compared with £1.8 million last year.
The 5.6 million Greenway shares held through Emo Oil (an 88.6 per cent subsidiary of DCC) were placed with institutional investors through Greenway's brokers, Panmure Gordon, at 75p sterling compared with a previous market price of 81p. Mr Flavin has resigned as non executive chairman of Greenway.
