Directors at British Parcel Delivery Group (Nightfreight) Agree to Management Buyout

Restaurant entrepreneur Luke Johnson’s investment in 7.8 percent of
parcel delivery group Nightfreight paid off today as he and his fellow
directors agreed a UKpound 35.1 million management buyout that will net him
UKpound 2.7 million cash.
The buyout, backed by Barclays Private Equity, is at 69 pence cash per
share — a 54 percent premium to Nightfreight’s share price in December when
talks were announced, but a 35 percent discount to the float price of 105
pence in 1994.
Johnson built up his stake in early 1999 when the share price was below 40
pence, and joined the board as a non-executive.
The group’s founding chief executive Russell Black is selling his 5.9
percent stake and retiring in September, when he will be 62. Black, Johnson
and the other selling directors account for 35.2 percent of the group and
there are acceptances from shareholders, including Perpetual, with a further
19.5 percent.
Divisional manager Robert Kelly, chief executive of buyout vehicle Ewenny,
said there was “real potential” in carrying awkwardly shaped parcels that
had not been realised.
Today Nightfreight reported full-year profits up 9.5 percent to UKpound 4.51
million on turnover up 2 percent to UKpound 96 million.
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Business News.
KNIGHT RIDDER TRIBUNE, 29th January 2001