Fresh-produce distributor Fyffes has announced that it is to demerge its property assets into a new quoted property company that will have initial assets of about €200 million.
In a note released to the Irish Stock Exchange, Fyffes said shareholders will hold 60 per cent of Bluestone Properties, while the company will own the remaining 40 per cent.
A recent independent valuation of Fyffes property portfolio, which is mostly in Ireland and the United Kingdom, valued the 25 properties at €190 million. This compares to the net book value of approximately €110 million.
Fyffes will transfer the properties and associated debt from its fresh produce business to Bluestone, which will initially be owned by Fyffes' current shareholders.
Fyffes will then pay €80 million for a 40 per cent stake in Bluestone, which will use part of the cash to repay the €60 million debt transferred with the demerged properties.
This will leave Bluestone with properties worth €180 million (net of deferred tax of €10 million) and net cash of €20 million.
It is planned to list Bluestone on the AIM market in London and IEX in Dublin.
The move will reduce Fyffes' total net assets by approximately €40 million, including its net cash by €20 million. Fyffes will continue to hold other properties, mainly in Continental Europe, with a net book value of approximately €70 million.
Fyffes will seek shareholder approval for the demerger at an EGM next March
