Severn Trent announced earlier this year that it intended to demerge its subsidiary, Biffa, and to make a return of capital to Shareholders.
Severn Trent will shortly be posting a circular to its Shareholders giving details of the Demerger and return of value as well as certain other corporate arrangements relating to them, including a share consolidation. A prospectus prepared in connection with the admission of Biffa Ordinary Shares to the Official List and to trading on the London Stock Exchange is expected to be published today.
The Waster’s view: In this blog we recently posted details of the Waste Recycling Group’s sale to Spanish group FCC, (although I think there is still the monopoly position to be established before things are finally resolved), and soon it seems the same will happen to Biffa.
My sympathies rest with the employees in these companies over the extended periods of these transactions. It is very difficult for all concerned at the management and technical grade levels in these organisations when all realise that some staff may no longer be required.
Furthermore, it is only after the shake-out is resolved in the higher management levels that most will find out their own position. In my experience from knowing many in waste management organisations from past company sales this further period of uncertainty can last as long as the sale period.
We can only hope that Biffa will soon be successfully sold and the process completed as soon as possible.