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(Sharecast News) - Van Elle Holdings announced an agreement to dispose of its Canadian subsidiary, Van Elle Canada, on Monday, selling the entire share capital and all related assets to 1560169 BC, a special purpose vehicle operating in a management partnership with Canadian rail contractor Remcan Projects.
The AIM-traded firm said the disposal was effective from 30 November and was expected to complete on or around 17 December.
Total consideration for the transaction was CAD 4.7m (2.55m), comprising an initial cash payment of CAD 2.7m and deferred consideration of around CAD 2m payable between 31 January and 31 July 2026.
The initial payment was equal to the net book value of certain fixed assets in Canada, while the deferred element remains subject to closing balance sheet adjustments.
Van Elle said that under new ownership, the Canadian business would have access to greater local resources to pursue opportunities in Ontario and other regions, building on progress made since the group entered the Canadian market in 2023.
Van Elle's rail division would continue to provide advisory services to the business under a consultancy agreement.
"Our diversification into Canada was a strategic initiative to mitigate the impact of UK rail sector investment cyclicality," said chief executive Mark Cutler.
"Since 2023, Van Elle Canada has secured several important frameworks which, despite delays to date, provide a significant opportunity for the new owner to take to the next stage, with Van Elle continuing to provide specialised technical support."
At 0929 GMT, shares in Van Elle Holdings were up 1.16% at 34.9p.
Reporting by Josh White for Sharecast.com.
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