Jaguar Spinoff Details Given
BL P.L.C., the state-owned automobile manufacturer, today released the first details of the long-expected spinoff of its Jaguar Cars subsidiary. BL, formerly British Leyland, said it would offer 180 million shares in Jaguar when the subsidiary went public later this year.
It did not specify a date for the offering, but analysts said they expected it to come by late July. BL also said that Jaguar had earned estimated operating profits of $25 million in the first three months of 1984, on revenues of $200.1 million; it did not release comparable data for the 1983 period. Jaguar, the most profitable of BL’s operations, earned $78.2 million in 1983, up from $10.8 million in 1982.
BL did not say how much it expected to raise from the offering, but analysts have estimated the company’s worth at $350 million to $560 million. This would put the offering’s per-share value at $1.95 to $3.10. BL said the British Government would retain a ”special rights redeemable” share in Jaguar for ”some” years to prevent unwanted investors from acquiring too large a stake in the company.