Blueheath Share Discussion Threads

[crosswire] 09/5/2007 17:40

Booker to Return to Stock Market With Blueheath Deal (Update3)

By Trista Kelley

May 9 (Bloomberg) -- Booker Group Plc, the largest U.K. food wholesaler, plans to return to the stock market after a seven-year absence by combining with a listed company.

Blueheath Holdings Plc, a wholesaler to convenience stores, said today it will acquire Booker for 1.34 billion shares in a so- called reverse-takeover transaction that gives the larger company's investors 90 percent of the combined entity and provides it with Blueheath's listing on London's Alternative Investment Market.

Charles Wilson, who resigned as executive director at Marks & Spencer Group Plc to rejoin Booker in 2005, will head the combined company as chief executive officer. During his time as head of Marks & Spencer's supply chain, Wilson cut costs by as much as 320 million pounds a year ($638 million).

``Booker has made great progress in the last 18 months and this transaction gives us the opportunity to take the group to the next level,'' Wilson said today in a statement.

Shares of Blueheath more than doubled to 27.5 pence in London, giving the company a market value of 39.5 million pounds, the biggest one-day gain since the company first sold stock to investors in July 2004.

Baugur Group Hf, based in Reykjavik, and investors including Landsbanki Islands hf and Fons Eignarhaldsfelag acquired Booker as part of the purchase of Big Food Group in 2005 and have since stemmed a profit decline.

New Products

Baugur and its partners cut costs, renovated stores and introduced new products to improve profit margins. Earnings before interest and taxes in the six months to September, 2006, increased 69 percent to 22 million pounds ($43.8 million).

The management team, which also includes Marks and Spencer's chief executive officer, Stuart Rose, ``is impressive, it's biggest virtue,'' Shore Capital analyst Clive Black said today in a note to investors. ``While structurally constrained and highly operationally geared, we deem Booker to be stable and off the danger list.'' Black does not rate the shares.

Booker sells more than 3 billion pounds worth of goods to 400,000 shops, schools, churches and restaurants and has 8,431 staff. Blueheath, which has 1,200 clients and 250 employees, had sales of 132 million pounds in the year ended March 2006.

Baugur, Landsbanki and Fons Eignarhaldsfelag will hold 35.2 percent of the new group, Susanna Voyle, a spokeswoman for Booker, said by telephone today.

To contact the reporter on this story: Trista Kelley in London at [e-mail]

Last Updated: May 9, 2007 12:12 EDT

[cockneyrebel] 09/5/2007 10:31

Well just been in for a few even after the rise.

Hadn't relised Richard Rose was exec Chairman - he's the guy that turned Whittard of Chelsea around from an on its knees co and 10 bagger+ in no time.

Worth a punt to follow him on a deal like this imo - he has good previous form too.

CR

[johnwalton] 09/5/2007 09:59

somebody seems prepared to pay over the offer
2 x 60k+ trades!

[iandippie] 09/5/2007 09:55

So, Bookers had an operating profit of 39m, and with the new shares, the combined group will be worth circa 400mill. Probably high enough for now until the picture becomes clearer.

[flangefighter] 09/5/2007 09:24

They`ll have ideas how to improve margins of course - or they wouldn`t have done the deal. Interesting few days I`d say as we`re sure to get press mention.
Journo`s probably hoping that we do the maths!

[agrazer] 09/5/2007 09:12

its a risky acquisition. ultra wafer thin margins. profits of £39m on mammoth sales of £3b... so any hit will have a disproportionate hit at the bottom line. they will also be taking on net debt of nearly £80m.

[flangefighter] 09/5/2007 08:58

How on earth do we value this now?

[battlebus] 09/5/2007 08:16

Listen i'm not complaining always had faith in Richard Rose that was the reason i invested here.Well done!

[iandippie] 09/5/2007 07:53

Just goes to show that dealing on the stock market is still not a level playing field. Up 40% yesterday BEFORE todays RNS. What a coincidence.

[deep powder] 09/5/2007 07:16

I was expecting an update but not a deal like this!!!!

[battlebus] 08/5/2007 19:47

Not a bad couple of days, up nearly 50% and possibly a 10 bagger imho.

[captain pugwash2] 08/5/2007 19:23

Heads G A L tails B L H
I got heads and lost on gal
worse things happen at sea.

[deep powder] 08/5/2007 15:43

The louder you scream the faster you go.....

[deep powder] 08/5/2007 15:14

Moving well now, let's hope some positive news soon..

[deep powder] 04/5/2007 16:42

Agree that, who knows where this could go, could be fun. I believe the new CEO has excellent reputation in the industry.

[battlebus] 04/5/2007 16:24

LARGE T TRADES! It's all looking very positive.

[battlebus] 04/5/2007 08:12

THATS THE ONE! i,m not losing it after all.Once July comes we should be as high as 20p imho.

[deep powder] 04/5/2007 06:09

Have just found it through Google it was in a Grocery type article. Looks pretty positive, operational gearing through Thurrock sounds the key. Lets tell the market then management!!

[battlebus] 03/5/2007 20:41

Can't remember the magazine it was in, i've been searching for it and as soon as i know which one i'll let you know.(old age creeping up) anyway Mark Aylwin made the comment and he should know what he's talking about.

[deep powder] 03/5/2007 14:40

More volume/rise today, this has a long way to go. Where was the article?

[battlebus] 03/5/2007 07:58

Manager reported in an article a couple of days ago that they will breakeven by july and that the thurrock site was running sometimes at 100%

[deep powder] 03/5/2007 06:03

If there is any vaguely good news, this thing could get very squeezy...

[battlebus] 02/5/2007 20:10

Things seem to be moving now.We could see a sharp rise if we can return to profit. Topped up with a few more.

[deep powder] 30/4/2007 13:37

Must be approaching the time of year for an update..