Many investors wrote off their investment when the company went into administration a year ago. But an initial offer of 245p to 255p a share, which appeared likely after a controversial government bailout, was improved to between 252p and 260p today by Railtrack management, with up to 220p paid out as early as January.
Reports suggest the government plans to bring Railtrack out of administration on 1 October, with the network handed over to successor Network Rail soon afterwards. Payments to shareholders would follow the sale of the network operator to Network Rail for £500m, and the sale of rights to the Channel Tunnel Rail Link to London & Continental Railways.
Railtrack expects to complete both deals early next month.
‘The board’s priority is now to return cash to shareholders in a tax-efficient manner as quickly as possible,’ said Geoffrey Howe, chairman of Railtrack Group, Railtrack PLC’s parent.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies