DCC divests majority stake in liquid gas business

Sales firm DCC has divested its majority stake in liquid gas business Hong Kong & Macau to Asian industrial group CITADEL Pacific.

DCC said on Thursday that the transaction valued its business at an initial enterprise value of roughly $150.0m, on a debt-free, cash-free basis, and has received $105.0m in cash on completion, with the balance being represented by a retained minority stake in the combined operations.

The FTSE 100-listed firm stated that in retaining a minority stake, it will benefit from the combination of the two businesses, which will operate under both the Shell and Exxon brands.

Chief executive Donal Murphy said: "The disposal brings further strategic and geographic focus to DCC Energy as we implement our Cleaner Energy in Your Power strategy. We outlined the progress we have made towards our 2030 vision at our full year results presentation on 14 May last. We will continue to bring cleaner energy for customers across Europe and North America."

As of 0940 BST, DCC shares were down 2.46% at 5,550.0p

Reporting by Iain Gilbert at Sharecast.com