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Commentary: Shareholders in the Whitestone group of carpet distribution companies have much to gain from the sale of the business to Victoria.


The deal — worth up to £14m over three years if profit targets are met — will see Whitestone group shareholders reinvest £900k of the initial £5.7m fee received in new shares in the wider Victoria group.


Stock market filings late Wednesday revealed more about that rights issue. Whitestone’s owners will take 165,140 new ordinary shares in Victoria PLC, giving them a small 1.1 per cent stockholding in the group.


Including Westex, Abingdon, Whitestone and Victoria’s pre-existing business, the carpet and flooring super-group now has annual revenues in the order of £200m.


Though the Whitestone group of shareholders, which includes Steve Byrne, Simon Oliver and Bill Calvert — best known for the Calverts Carpets retail chain — have ceded control of Whitestone, their reinvestment back into the group is another incentive — in addition to the profits related payment — and provides a signal of long term intent.


To back up the point, Victoria’s share price is currently north of £5/share*, up from less than £1.50/share at the end of July 2014.


* correct at time of publication