On the go: The £75.6mn Carr’s Group Pension Scheme may secure a full buyout after its sponsor announced an agreement to sell its interest in a subsidiary.
In line with a strategic review announced in January to grow shareholder value, the agriculture and engineering company entered into a conditional agreement to dispose of its interest in Carr’s Billington Agriculture, to Edward Billington and Son, for an aggregate consideration of up to £44.5mn.
Following completion, the board intends to determine the benefits for shareholders of a full buyout of the group’s legacy defined benefit scheme, which has been closed to future accrual since 2015.
The scheme’s latest actuarial valuation, as of December 31 2020, showed a surplus of £2.3mn, equating to a funding level of 103 per cent, according to the company’s 2021 annual report.
A market update explained that the buyout process would require approximately £4mn to arrange, including a £400,000 payment already committed by the company, following the removal of the relevant employers from the scheme through a flexible apportionment arrangement.
This is a is a legal agreement that transfers pensions liabilities from one employer to another.
This article originally appeared on MandateWire.com
