The UK’s pensions watchdog has given its approval to Uniq’s plans to solve a pension deficit that dwarfs the value of the UK desserts-to-sandwich maker.
Uniq’s proposal for the trustees of its pension fund to take 90% of the company’s equity in exchange for giving up their claim has been cleared by the Pensions Regulator.
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The green light will come as a relief to Uniq, which has worked for months to solve the issue of a pension deficit of over GBP400m (US$642.5m). Uniq was formerly UK dairy firm Unigate and has around 21,000 former milkmen in its pension scheme.
The company had its first idea to deal with the deficit rejected by the watchdog last summer and chief executive Geoff Eaton said yesterday (9 February) that regulatory backing for its latest plan was “the result of over 18 months’ hard work”.
He added: “The pension solution will release the business from the huge legacy pension burden, while realising the best possible outcome for pension members and achieving some value for our shareholders.”
Under the plan, which still requires shareholder backing and approval from the High Court, the pension trustees will take a 90.2% stake in Uniq, which will also make a cash payment of GBP14m to the scheme. Existing shareholders will keep 9.8% of the business.
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By GlobalDataShareholder and court meetings will take place on 25 February. Uniq expects its shares to be suspended from trading on 17 March. The company is then scheduled to be listed on the AIM exchange on 1 April.
