ADT, Michael Ashcroft's security and vehicle auction group, is linking
up with a major Canadian company in a move which should improve ADT's
standing with investors.
Laidlaw Transportation, the third largest waste disposal company in
North America, is taking a 22% stake in ADT through buying the holding
of Henlys Group of Canada for #75.2m and subscribing for 83,000,000 new
ADT shares at 160p each, expanding the number in issue by 13%. Laidlaw
is 48% owned by Canadian Pacific, the major Canadian conglomerate.
Henlys will use the money to reduce its borrowings from ADT and in
total ADT will collect #210m from the transaction, almost eliminating
its debt and enhancing assets per share. Mr Ashcroft pointed out that
both groups are involved in service industries, making the link ''a
natural association''.
The Canadian link takes will help to improve ADT's previously poor
standing in the City. The shares gained 7p to 165p.
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