22/06/1990

Anglo Group in £120m sale

THE TIMES By GRAHAM SEARJEANT FINANCIAL EDITOR .

ANGLO Group, the vehicle adopted by Sir James Goldsmith and Lord Rothschild 16 months ago to bid for top British companies, is to unbundle itself after the failure of the Hoylake bid for BAT..

Anglo Leasing, the original profitable business, is to be sold to the unquoted Summit Group for £120 million, believed to be worth about £105 million to Anglo. The deal will settle Anglo’s debts and leave it nursing a heavy loss on its remaining 35 per cent stake in Sunningdale, which bought 29.9 per cent of Ranks Hovis McDougall..

Shares in Anglo have been suspended indefinitely at 173p because the Exchange insists companies have a business.

Sir James, Anglo chairman, was not in London for the news, but Andrew Stafford-Deitsch, a director, said the board would consider several options to provide a market for 4,000 outside shareholders with 25 per cent of Anglo stock. These could include distributing the RHM shares to holders or seeking a quotation in Luxembourg..

Summit, now run by Philip Ralph, executive vice chairman, and Kit Hunter Gordon, a founder and managing director, is a specialised leasing and financial services group that has emerged intact from Atlantic Computers and British & Commonwealth, which once held a 40 per cent stake..

It was started with backing from Lord Rothschild’s firms and there are ties to Anglo Leasing, built up by Laurence Silman, its chairman and chief executive, as a office equipment leasing specialist..

Mr Ralph said Summit, which will double its size to pre-tax profits of about £21 million, had no plans for a listing. Finance for the purchase has been subscribed by a consortium led by Electra Kingsway and existing shareholders, which include GEC with 39 per cent. They are also buying the remaining B&C stake.