Fruit distributor Fyffes today outlined details of the property company it plans to spin out of the group and list separately. It said the new group would now be called Blackrock International Land.
When Fyffes first announced plans to demerge its property investments in December it planned to call the business Bluestone Properties.
The other details of the plan remain the same, with Fyffes transferring most of its property portfolio to Blackrock in exchange for a one-for-one issue of Blackrock shares to Fyffes' shareholders. Fyffes shareholders will have a 60% stake in Blackrock, with Fyffes holding the remainder.
The new company will initially have 30 properties, which have a combined gross asset value of €207m - including cash. It will aim to build a substantial international property portfolio.
Associated debt due to Fyffes of about €63m will transfer to Blackrock and a deferred tax liability of around €10m arise in the property group as a result of the demerger.
The demerger must still be approved by Fyffes shareholders. An EGM will be held on May 9 to approve the move.
Assuming the deal is approved at a special meeting of shareholders on May 9, Blackrock shares will begin trading on the IEX market of the Irish Stock Exchange and AIM market of the London Stock Exchange on May 15.
The proposed demerger and subscription for equity in Blackrock will reduce Fyffes' total net assets by approximately €118m, including its net cash by €20m. Following the demerger, Fyffes will retain properties with a market value of about €61m.
