Silverchef gets Blue Stamp nod for Next Capital hospitality sale

Finance group Silver Chef has finally overcome the objections of a major shareholder to sell its hospitality businesses.

Silver Chef founder Allan English. Picture: Richard Waugh

Food and hospitality finance company Silver Chef has entered into an agreement with a consortium of investors backed by private equity firm Next Capital to offload its hospitality subsidiaries for $18.25 million after securing the support of a major shareholder.

Blue Stamp Company, which own 19.99 per cent stake in Silver Chef, previously threatened to block a deal with the Next Capital-led consortium, claiming the offer undervalued the listed business.

But in an announcement to the market on Monday, Silver Chef said Blue Stamp had agreed to support the latest bid, in the absence of a superior proposal.

As part of the transaction, Silver Chef will undertake a restructure so that all of the assets and liabilities of the hospitality business, including a debt facility and warehouse securitisation facility, will be novated to the hospitality group and amended so that Silver Chef will be released from completion.

All employees of Silver Chef will transfer to the hospitality business as part of the restructure.

The funds from the sale will be used to pay down debt on its equipment financing business GoGetta, leaving the company with no material debt, Silver Chef told the ASX on Monday.

Meanwhile Silver Chef will continue with an orderly run down of the GoGetta business.

The consortium of investors will buy a number Silver Chef’s subsidiaries, including the Silver Chef Rentals businesses in Australia, New Zealand and Canada, as well as Silver Chef Foundation, Silver Chef Equipment Trust No 1 and two US subsidiaries.

The deal remains subject to approval by shareholders, who will vote on the transaction at the company’s annual general meeting on November 4.

It also relies on approval by the Foreign Investment Review Board and Silver Chef and Next Capital agreeing on the steps of the restructure and its implementation.