Xpediator PLC (LON:XPD) has announced a deal to sell EshopWedrop Holdings (ESWD), a non-core B2C logistics subsidiary.
ESWD is being bought out by Inert Logistics, a vehicle in which ESWD managing director Mircea Bandean is the controlling stakeholder.
Inert Logistics is to pay GBP300,000 in cash, over instalments over the next three years.
“ESWD is a good concept but is not part of our core proposition, it was consistently loss making and a distraction from our primary operations where we see much greater potential to grow future revenues and profits,” said Robert Ross, Xpediator chief executive.
“On completion of the sale, the group will benefit from annualised cost savings of GBP0.35 million.”
ESWD’s assets had a book value of GBP700,000, the company noted. The business made a GBP500,000 net loss for the twelve months ended December 31 2019.
The transaction will have a completion date of December 31 2020.
As Mircea Bandean is a director of ESWD the transaction is deemed to be a related party transaction under AIM rules.
Xpediator noted that, having consulted with its Nominated Advisor, Cenkos, it considers the terms of proposed disposal to be fair and reasonable insofar as the independent Shareholders are concerned.
