Shares in C H Bailey (AIM: BLEY) were in demand this morning after the industrial holdings company announced the sale of the majority of its Maltese assets to Vic Bon Limited for £29 million, causing its stock to soar 80%.
The Main Site, which provides accommodation services to English language students, was sold for £26.79 million, while Dolphin House, which the company said was generating low revenues, went for £2.14 million. The properties had a book value of £3.33 million and £300,757 respectively.
The Dolphin House sale is slated for completion in January 2010, while the Main Site sale is expected to be completed in 2013, effectively ceasing C H Bailey’s hotel operations in Malta.
The proceeds from the sale, which is now subject to shareholder approval, will be used to reduce borrowings and increase the group’s working capital. C H Bailey also said long and short term investments and payment of a special dividend also were in consideration.