Barkby Group shares more than doubled in value on Monday after it reveals the potential sale of a sleep technology developer, in a potential deal worth tens of millions.
The AIM-listed firm told investors it was ‘exploring options to maximise shareholder value’ from Cambridge Sleep Sciences (CSS), which uses neuroscience to manufacture products for improving natural sleep.
Sky News first reported on Sunday that the firm was considering a possible sale of CSS in order to concentrate on its roadside real estate portfolio.
Rest better: Barkby Group is the parent company of Cambridge Sleep Sciences (CSS), which uses neuroscience to manufacture products for improving natural sleep
Based in Abingdon, Barkby operates several convenience retail stores, drive-thru restaurants and EV charging infrastructure points, among other assets in arterial road locations.
It also owns a used car dealership in Northamptonshire and six gastropubs across the Cotswolds, Oxfordshire and Sussex.
The business said advisers had been appointed to begin a ‘strategic review’ of its investment in CSS, known for its SleepHub and SleepEngine products.
Reports suggest a sale could net Barkby around £50million, although the company insisted to investors there was ‘no certainty’ that any offer or sale will materialise.
Sky also reported that Barkby insiders were in discussions to give ‘prominent names’ in the hotel and healthcare industries access to its technology.
In the coming three years, Barkby expects the division to generate turnover of at least £10million per annum based on currently agreed licensing agreements.
Three months ago, CSS signed a five-year deal with Sleep Sense International that will allow its SleepEngine platform to be used to develop a smart pillow.
Just a week later, the firm announced a partnership and licensing deal with Bowers & Wilkins, the consumer audio division of medical technology maker Masim.
Charles Dickson, executive chairman of Barkby, said: ‘We are delighted with the progress made by CSS over the last three years.
‘The market opportunity for its technologies is clearly significant, and we look forward to providing further updates on CSS’s progress in due course.
‘We expect CSS to become a significant business in its own right, and the purpose of the strategic review is to evaluate the most appropriate corporate setting and structure for the company to allow it to develop its full potential as well as what is in the best interests of Barkby’s shareholders.’
Barkby Group shares skyrocketed by 144.4 per cent, or 4.33p, to 7.33p following the announcement.
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