Wincanton’s shares have taken a hit following the announcement of a general meeting of its shareholders to approve the disposal of the remainder of its European operations to German rival Rhenus.
The general meeting of the Chippenham-based distribution group will take place on November 21, where shareholders are to vote on the sale of the arm of the company worth approximately €38.7m.
Wincanton had built up its European operation to include 38 distribution depots across Germany and 30 in France. In total the business employs around 3,000 people.
The company made an operating profit of approximately €4.1m on revenues of around €558m in the 12 months to March 31. Gross assets were approximately €181m. Proceeds of the sale will be used to reduce group debt.
The shares stood at 67p this afternoon, down 6.25p or 8.53%. That compares with a high of 257p in early November last year.
