7 May 2024
BAILIWICK INVESTMENTS LIMITED
(“Bailiwick”, or the “Company”)
Portfolio Update - Sandpiper
In light of the announcement published today by SandpiperCI Group Limited (“Sandpiper), the Board of Directors of the Company is pleased to provide the following update to investors.
Sandpiper has agreed to sell its indirect subsidiary, Food Retail Limited, to Wm Morrison Supermarkets Limited. Food Retail Limited will house Sandpiper’s food retail business operating franchises under the "Morrisons Daily", "Iceland", "Checkers Xpress" and "Le Cocq's Stores" trade names across the Channel Islands.
The consideration payable to Sandpiper is expected to be around £60.6 million. After payment of transaction-related expenses and the repayment of its existing bank debt of £18.0 million, there will be c. £40.1 million available for distribution to Sandpiper’s shareholders in due course.
The Company’s interest in Sandpiper represents 29.31% of the issued ordinary share capital, and so its share of funds available for distribution would be expected to total c. £11.7 million.
The transaction is subject to, among other things, approval by Sandpiper’s shareholders at an EGM to be held on 4 June 2024 and approval from each of the Jersey Competition Regulatory Authority and the Guernsey Competition & Regulatory Authority. Bailiwick, together with other significant shareholders in Sandpiper, has provided an irrevocable undertaking to vote in favour of the resolution at the forthcoming EGM.
The Company is wholly supportive of the sale, with the agreed transaction due to take place on terms that the Directors believe will enhance the value of its holding in Sandpiper and the Company’s Net Asset Value.
Subject to certain conditions being satisfied, the sale is expected to complete during the summer of 2024. The Board notes that Sandpiper intends to undertake a strategic review of the remaining business of its group and looks forward to receiving further updates from Sandpiper in due course.
Enquiries:
Ravenscroft Specialist Fund Management Limited ircf@ravenscroftgroup.com (Investment Manager) +44 (0)1481 732746