Blue Power Group To Spin Off Lumber Depot Division As Separate Company In Move To Position It For Growth Through Acquisitions Or Mergers
The Directors of the Blue Power Group Limited have reportedly reached the conclusion, that having the Lumber Depot Division operate as a separate company will enhance its prospects for growth through acquisitions of and/or mergers with other companies in related lines of business.
This as they look to the issue of growth of the two divisions of the Company, including the Blue Power Soap Division, where the same considerations would apply to growth.
In order to effect this move, the Directors have scheduled an Extraordinary General Meeting to be held immediately after the Annual General Meeting on August 14, 2019, and will consider and, if thought fit, will pass resolutions that would see the issue/transfer of the Company’s shares in a newly created subsidiary of the Company, Lumber Depot Limited to the Company’s shareholders on record as at August 1, 2019.
The intent will be that after this decision or actions, shares in Lumber Depot Limited will be held by the shareholders of the Company pro rata to their existing holdings in the Company.
In addition, the Directors are also seeking the transfer of the business and assets of the Lumber Depot Division of the Company to Lumber Depot Limited as of 1 August 2019, in consideration for related liabilities and transaction costs.