Candover sells final stake in Wellstream
Apr 10 2008 by Karen Dent, The Journal
A PRIVATE equity company which owned the majority of oil and gas pipeline maker Wellstream before its stock market flotation has sold its final stake in the Newcastle-based company.
Candover Partners spent £100m buying over three-quarters of Wellstream from US company Halliburton in 2003. It has now sold its remaining 13.8% holding and its director Nils Stoesser has stepped down from the Wellstream board.
Wellstream is currently valued at around £1.25bn, compared to a market capitalisation of £318m when it floated on the stock exchange a year ago. Vinay Bedi, divisional director of Brewin Dolphin Newcastle, said: “Essentially the private equity company is out and in reality this was always likely to happen.
“No one should be surprised by this. It marks the completion of the flotation and the final exiting of the company that has owned the business for the past few years.
“It’s quite a positive thing. If you were buying shares in Wellstream, you would be concerned that this holding would be sold – and Candover could have sold it at a low price – but once it has gone, that threat disappears.”
Wellstream employs around 570 people at its factory in Walker and has plans to recruit an additional 50.
