Electra's Park Resorts to merge with Parkdean
Private equity firm Electra said it plans to merge its Park Resorts group with caravan holiday specialist Parkdean Holidays in a deal that will create an enterprise worth £960m.
Equity Investment Instruments
11,533.52
17:14 18/04/24
FTSE 250
19,450.67
17:14 18/04/24
FTSE 350
4,334.00
17:14 18/04/24
FTSE All-Share
4,290.02
16:54 18/04/24
Unbound Group
0.75p
17:30 15/01/24
Once the deal is completed a new £550m loan will be used to refinance existing debt facilities including those in which Electra has invested, which will give Electra £96m in cash.
The financier said this would give it a total cash payout of £106m, or 81%, of original investment cost. Electra will hold 45% of the combined group..
Electra said the merger valuation of its debt and equity interests in the Park Resorts Group implies an uplift of £21m, equivalent to an increase in diluted NAV per share of 52p, compared to a valuation in March of £239m and net investment since that date of £24m.
The merger combines two complementary portfolios of holiday parks to create a nationwide operator with 73 sites and earnings before interest, tax, depreciation and amortisation of more than £100m, Electra said.