Gartland back with pounds 73m deal
Sunday 11 August 1996
The paper deal will allow GWB, headed by Eighties whizzkid Tony Gartland, to pick up Select's pounds 5m cash pile, while providing an exit for some of the shell's shareholders. GWB will also get a secondary benefit from Select's pounds 86m in capital losses, which it will be able to offset against its own capital gains.
Plans call for pounds 600,000 of new stock to be issued to cover the costs of the transaction. However, the new issue is thought to be twice over- subscribed, and additional shares could be issued to satisfy institutional demand.
After a one-for-20 share consolidation the new stock will be valued at pounds 1, up slightly from 4.5p when Select's shares were suspended but double the 2.5p level they were at a few weeks ago.
Halifax-based GWB is a unique company, crossing a venture capital firm with a traditional industrial conglomerate. It was formed by the executive team that took a small electrical firm, FKI, and built it into a pounds 600m conglomerate during the 1980s. The 1987 stock market crash marked the end of the good times for the acquisition-driven group, and in 1991 Mr Gartland stepped down as chairman. Meanwhile he, with FKI colleagues Jeff Whalley and James Barker, had set up GWB to buy up small companies.
They buy or create small companies, merge similar ones, float them when they are worth pounds 10m to pounds 15m and use the new capital to continue an aggressive growth strategy until they are 10 times that size.
- 2 The man who filmed the Freddie Gray video has been arrested at gunpoint
- 4 How the language you speak changes your view of the world
General Election 2015: Fishing is on Nigel Farage's mind as he casts a line to the disaffected of Grimsby
The man who filmed the Freddie Gray video has been arrested at gunpoint
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...