Exel will reap $50 million from IPO of Sirva

Exel will reap $50 million from IPO of Sirva    Exel, a U.K.-based provider of logistics services, said Wednesday in London that the Exel Group would receive about $50 million in cash following the U.S. initial public offering of Sirva Inc., the owner of North American Van Lines.
   In addition, Exel will retain interests in Sirva that are valued in the market at $130 million, “based on the IPO price and net of costs,” Exel said in a statement. The IPO price has been set at $18.50 per common share.
   In 1999, Exel disposed of its Allied Pickfords Moving Services business to the parent company of North American Van Lines for $400 million in cash, together with a minority equity interest that has a current carrying value of $34.5 million.
   As a result of the IPO, Exel will redeem its preferred stock, together with selling one million shares of common stock.
   As with other parties involved in the IPO process, Exel will be unable to sell any part of its retained holding for a period of six months.
   “We will be retaining around 6.3 million shares and a convertible warrant for a further 2.8 million shares into 2004. We will review the best strategy for this investment and take the appropriate action after the lockup period,” said John Allan, chief executive of Exel.