Exel to benefit from investment in Sirva

LONDON (AFX) – Exel PLC said it will realise an exceptional cash gain this
year of some 50 mln usd following the Initial Public Offering in the US of
Sirva Inc, the owner of North American Van Lines.
In addition Exel would be retaining interests in Sirva Inc, representing
around 6.3 mln shares and a convertible warrant for a further 2.8 mln shares,
for at least six months. Based on the IPO price and net of costs, the retained
stake would be valued in the market at around 130 mln usd.
Prior to the IPO Exel had equity interests representing 12.9 pct of common
stock, 24.5 mln usd of preferred stock bearing a 13 pct coupon and a warrant to
subscribe for up to a further 2.8 mln shares at 12.62 usd per share.
As a result of the IPO Exel will redeem its preferred stock and receive the
outstanding interest payable, together with selling 1.0 mln common stock. The
IPO price has been set at 18.50 usd per common share.
Exel said it could be called upon for up to an additional 0.4 mln shares
which would result in a further cash inflow of around 7 mln usd being recorded
in 2003. The group said it will continue to adopt a cautious view on the future
realisable value.
Exel chief executive John Allan said the group will review the best strategy
for its remingin investment in Sirva and take the appropriate action after the
6-month lockup period.
He added: “Exel is performing well at this time and securing new business to
underpin our expectations of long-term growth. The IPO of Sirva Inc unlocks
further value for Exel’s shareholders and will add to the financial strength of
the group going forward.”
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