FIH group

FIH group plc (LSE: FIH) or FIH (formerly Falkland Islands Holdings plc) is a British conglomerate which operates in the Falkland Islands through the Falkland Islands Company. Its other main businesses are the Portsmouth Harbour Ferry Company, which operates the Gosport Ferry in the south of England, and a London-based art storage and transport company called Momart.

FIH Group plc
FormerlyFalkland Island Holdings (1997–2016)
FOSSILDRIVE PLC
(1997)
TypePublic limited company
LSE: FIH
IndustryConglomerate holding Company
Founded1997 (1997)
HeadquartersBishops Stortford, England
Area served
UK and Falkland Islands
Key people
Revenue£38.56 Million (2015)
£3.93 Million (2015)
£3.14 Million (2015)
Total assets£57.67 Million (2015)
Total equity£36.69  Million (2015)
Number of employees
357 (2015)
Subsidiaries
Websitefihplc.com

History

1997–2016: Falkland Island Holdings
Falkland Islands Company's historical building in Stanley, Falkland Islands

In 1997, Anglo United, which had an unsustainable amount of debt, underwent a capital reconstruction and distributed shares in Falkland Islands Holdings plc to its shareholders. Anglo United shareholders received 1 share in FIH for every 300 shares of AU.[1]

in January 1998 - FIH was first listed on the London Stock Exchange, with £2m of debt the issue price of 100p. The Company was capitalised at £6 million. In January 2003 FIH share listing moved to the AIM market.

In February 2004 Falkland Gold and Minerals Limited (FGML) was established with financing to carry out an aero magnetic survey of the Falklands to exploit its exploration licence covering the whole of the Island. In June 2004 Falkland Oil and Gas Limited (FOGL) was established with financing to carry out a 2D seismic survey over its 33,000 km2 offshore licence to the South and East of the Falklands. In October 2004 FOGL raised £12m and its shares were admitted to AIM, capitalising the Company at £32m. In December 2004 FGML raised £10m and shares admitted to AIM, FOGL was granted an exploration licence over a further 50,000 km2 to the South and East of the Islands. and FIH acquired Portsmouth Harbour Ferry Company for £7.5m.[2]

In June 2005 FOGL raised £10 million through an Institutional placing. FIH subscribes £2m increasing its share holding to 18.3%. In February 2006, FIH sold 1.8m shares in (FOGL), realising £2.4m and reducing its holding back to 16.3%. In December 2006, FOGL raised an £8m convertible loan to fund its ongoing exploration programme.

In January 2007 FIH sold 100% of its holding in FGML for 6p per share to RAB Capital and in October 2007 FOGL announced a farm-in deal with BHP Billiton to fund drilling programme in South Atlantic.

In March 2008 FIH acquired 100% of Momart, a UK market leader in the handling and storage of fine art and antiquities, for £10.27m.[3]

In November 2009 FIH sold 3 million shares in FOGL after the placing earlier in the month generating proceeds of £3.6 million and a profit of £3.0 million at a price of 119 pence per share. This reduced FIH's holding to 12.0 million shares (8.2%).

In January 2012 FIH participated in the placing of new shares by FOGL by subscribing for 2 million new shares at a cost of £0.86 million (43 pence per share). FIH's holding in FOGL shares was increased to 14 million shares (4.4%).

July 2012, £10.0m equity capital raising FIH raised £10.0 million gross from a share issue at 320p per share. £8.0 million was subscribed by Blackfish Capital and £2.0 million has been raised from an Open Offer to the existing shareholders. The proceeds from the share issue will be used to develop the Group's assets in the Falkland Islands in anticipation of the economic growth that the Board believe will follow. July 2012, FIH sold 1.2 million shares in FOGL for £1.01 million (86 pence per share), generating a profit of £0.77 million and reducing its holding to 12.8 million shares (4.0%).[4]

March 2015 FIH sold 7.825 million shares in FOGL for £1.6 million (29 pence per share), generating a profit of £0.7 million and reducing its holding to 5.0 million shares (0.9%). May 2015, the last 5 million shares in Falkland Oil & Gas ("FOGL") sold for £1.4 million, generating a profit of £0.4 million for the Group.With the sale of these 5 million shares, FIH completed the realisation of its investment in FOGL. Over the last 10 years since FOGL's flotation, FIH has generated over £8 million in cash proceeds and £5 million in profits from its highly successful investment in FOGL [5]

January 2016 the company had a capital reorganisation involving a share consolidation (1000 to 1) and split (1 to 1000) decreasing the number of shareholders from 2139 to 510.[6]

2016–present: FIH Group

September 2016 the group changed its name to FIH Group plc to more properly reflect the balance of the group’s activities which are now predominantly in Europe and the UK. Despite this change of name, the Group’s Falklands business, the Falklands Islands Company ("FIC"), remains a core part of the Group.

In February 2017 Staunton Holdings made a takeover offer of £3 per share with a total value of £37.3 Million.[7] In March, Dolphin fund owned by billionaire Eduardo Elsztain requested information about the company in order to make its own takeover bid.[8] In response Staunton reduced the requirement of 90% of the share capital to be purchased from the offer to 50%.[9] The announcement of a potential takeover by an Argentinian group gained press coverage due to the highly political nature of the islands.[10][11][12] In April, Staunton Holdings' offer failed to gain enough shares, resulting in a withdrawal of the takeover and sale of Blackfish's (a Staunton affiliated company) 20% shareholding in the company.

Financial information and holdings

FIH shares have traded on the Alternative Investment Market (AIM) in London since 13 January 2003. In July 2010, FIH's market value was around £36m. It made a pretax profit of £5.669m in the year ended 31 March 2010 on revenue of £29.224m. £3.3m came from the sale of shares in Falkland Oil and Gas in November 2009.[13][14]

Subsidiaries
CompanySectorOwnership %Acquisition DatePrice paid
Falkland Islands Company Diversified 100% 1997 (From foundation) N/A
Falkland Islands Trading Company Ltd
  • Falkland Island Shipping Limited (Trading as Darwin Shipping)
  • Erebus Limited
  • Paget Limited
 Shipping 100% 1997 (From foundation) N/A
Portsmouth Harbour Ferry Company Ltd
  • Gosport Ferry Ltd
  • Clarence Marine Engineering Ltd
  • Portsea harbour company Ltd
  • Portsmouth Harbour Waterbus Company Ltd
 Passenger Transport 100% December 2004 £7.5 Million
Momart International PLC
  • Momart Ltd
    • Dadart
 Art Storage and Transportation 100% 5 March 2008 £10.27 Million [15]
South Atlantic Construction Company Limited (SAtCO) Construction 50% June 2012 (Co-Founder) £50,000

Past holdings and investments
CompanySectorOwnership % (Peak)Date of AcquisitionDate of disposal
Falkland Gold and Minerals Limited Metal Exploration 14.4% February 2004 January 2007[16]
Falkland Oil and Gas Oil and Gas Exploration 18.3% October 2004 May 2015

See also

References
  1. https://www.independent.co.uk/news/business/anglo-united-to-reform-itself-as-falkland-islands-holdings-1292406.html
  2. http://www.portsmouth.co.uk/news/ferry-in-takeover-battle-1-1262961
  3. http://www.electricmarketing.co.uk/mergers-and-acquisitions-2008.html
  4. https://www.thetimes.co.uk/article/spotty-sails-into-falklands-5d3vswk768k
  5. "FALK IS. HLDGS Share News - FKL Stock News - Interactive Investor". Interactive Investor. Retrieved 25 September 2015.
  6. http://fihplc.com/download/FICircular.pdf
  7. http://www.lse.co.uk/AllNews.asp?code=ximbw9c5&headline=FIH_Group_Agrees_To_GBP373_Million_Takeover_By_Staunton_Holdings
  8. https://www.reuters.com/article/brief-fih-group-says-received-letter-fro-idUSFWN1GS0A2
  9. http://www.lse.co.uk/AllNews.asp?code=ix9csbh9&headline=Staunton_Extends_FIH_Offer_Lowers_Threshold_To_Fend_Off_Rival_Bid_ALLISS
  10. https://www.standard.co.uk/business/argentinian-billionaire-in-falklands-bid-a3492351.html
  11. http://en.mercopress.com/2017/03/18/falklands-law-compliance-needed-for-any-islands-major-assets-change-of-ownership
  12. https://www.ft.com/content/89ccf542-0b46-11e7-97d1-5e720a26771b
  13. "Archived copy". Archived from the original on 4 December 2009. Retrieved 27 July 2010.CS1 maint: archived copy as title (link)
  14. Archived 11 July 2011 at the Wayback Machine
  15. "Fine art move by Falkland". Growthcomapny.co.uk. Retrieved 25 September 2015.
  16. "Falkland Islands sells stake in Falkland Gold Minerals to RAB for 6pshare". lse.co.uk. Retrieved 25 September 2015.
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