Letchworth steps in for Fayrewood
Former distribution heavyweight takes the last step in returning value to its shareholders after agreeing to £29.3m offer
Fayrewood, the former owner of distributor Interface Solutions, is selling up for £29.3m to release cash to its shareholders.
The London-listed firm has spent the last two-and-a-half years offloading all of its operating divisions after opting to exit the distribution business. At the end of this process, it was left with a cash balance of £36.6m.
Fayrewood's former interests include UK IBM distributor Interface, pan-European security distributor Computerlinks, Spanish broadliner UMD and French Banque Magnetique.
Fayrewood’s independent directors this morning announced they have reached agreement on the terms of a recommended offer from Letchworth Investments – a firm established solely for the transaction.
The 126 pence a share offer values the firm at about £29.3m. Fayrewood shareholders also have the option of receiving 98 pence in cash and one Letchworth ordinary share for each Fayrewood share.
Letchworth chairman David Kleeman, who is also non-executive chairman of Fayrewood, said: "Computer distribution was once one of the most exciting parts of the stock market. That has long passed. Acknowledging this change, the board took the hard decision two-and-a-half years ago to make available to Fayrewood shareholders as much value in the company as possible.
"Today's announcement marks the last substantial step in that strategy."
Kleeman said he believed the transaction represents a fair offer to Fayrewood shareholders. "It enables them either to obtain a full cash exit now or – via the part share alternative – to receive some cash now, but also to fully participate in the future economic fortunes of Fayrewood," he explained.
Richard Templeton, chairman of the independent board, said: "This is the best offer for Fayrewood we have received, and has been structured in such a way as to achieve our stated objective of delivering the maximum amount of cash back to Fayrewood shareholders in the most timely and cost effective manner that is practical at this point in time."
The scheme is set to be put to Fayrewood shareholders on 5 January.
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