Member Article

Mouchel administration leaves shareholders empty handed

Shareholders have been left with nothing after the financial restructuring of infrastructure group Mouchel.

The company was acquired by banks and management despite shareholders voting against the move.

Original plans would have seen the same bank buyout and delisting from the stock exchange.
Instead, administrators oversaw the deal and the firm was suspended from the stock exchange.

Mouchel builds roads, motorways and schools, and manages motorway traffic.

The newly-incorporated company MRBL Ltd, which is owned by Mouchel Group plc’s lenders RBS, Lloyds Banking Group and Barclays, took over the company this weekend.

The move into administration came after a series of issues including resignations, contractual mishaps, problems in trading and failed takeover bids.

KPMG oversaw the deal, which will leave shareholders with no return after they rejected original proposals which would have offered a “special dividend” of 1 pence per share.

Debts of £83m are set to be written off by RBS, Lloyds and Barclays, for an 80% stake in the organisation. Management will retain 20% of the firm.

Commenting on the restructuring of the organisation, Grant Rumbles, Chief Executive of Mouchel said: “The completion of this restructuring means that the long-term future of this business is secure and the jobs of more than 8,000 people have been preserved. We now have the right capital structure to take Mouchel forward.”

Mr Rumbles expressed confusion over shareholders decision against the changes in the company, and said he was disappointed with their judgement.

This was posted in Bdaily's Members' News section by Miranda Dobson .