Disposal

RNS Number : 6770N

Michelmersh Brick Holdings PLC

16 June 2010

 



16 June 2010

Michelmersh Brick Holdings plc

("Michelmersh" or the "Company")

Sale of surplus freehold land at Freshfield Lane Brickworks for £1.3 million

Michelmersh Brick Holdings plc (AIM:MBH), the specialist brick, land development and landfill company, stated at the AGM on 20 May that integration Freshfield Lane Brickworks ("Freshfield") is progressing well and that the sale of certain surplus assets of Freshfield is underway.  The Company is pleased to announce that it has now exchanged contracts for the sale of 300 acres of surplus agricultural land for a total cash consideration of £1.30 million, with completion scheduled for 25 June 2010.  The land is to be acquired by two trusts, Mrs BVS Hardy Settlement 1965 and Mrs BVS Hardy Settlement 1985 (the "Hardy Trusts").

The land to be sold forms part of the 330 acres of freehold farming land, woodland and scrub which was valued by Gerald Eve LLP on 5 November 2009, in connection with the acquisition of Freshfield, at a total value of £1.03 million.  . The price achieved for the first 300 acres represents a surplus of £270,000 to the anticipated value attributed to the entire 330 acres. The cash proceeds will be used to supplement the Company's working capital

The Hardy Trusts currently own approximately 8.9% of the Michelmersh issued share capital.  In addition, Mr Alan Hardy, a director of the Company, has a non-beneficial interest in the Hardy Trusts.  Therefore the sale of the surplus land is deemed to be a related party transaction.  The directors, excluding Mr Alan Hardy, having consulted with Charles Stanley Securities, the Company's Nominated Adviser, consider the terms of the land sale to be fair and reasonable insofar as the Company's Shareholders are concerned.

A further announcement concerning the sale of the remaining 33 acres, and the sale of the surplus residential properties acquired, is expected to be made shortly.

For further information:

Michelmersh Brick Holdings plc Chief Executive Martin Warner	01442 870227
Charles Stanley Securities Nominated Adviser Russell Cook/Carl Holmes	020 7149 6000
Tavistock Communications Jeremy Carey/Amy Walker	020 7920 3150

 

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