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ref date:14 May 1997 (TRA)
Scottish rail bosses set for sale bonanza

FIVE bosses of Scottish rail engineering business Relayfast may well get indfalls of up to ten times their investments from the 1996 privatisation from a sale expected to be announced next week.

Director Fred Saunders' 50,000 investment could be worth as much as 500,000, commercial manager Hugh Harvie's 33,000 could grow to 330,000 and managers John Kay, Brian Shaw and John Urquhart could each see 28,000 increase to 280,000.

Relayfast lays track in Scotland and the West of England, was bought from British Rail by its management last year .

Relayfast lost 50pc of its track relaying contracts in a re-tendering exercise with Railtrack in January and was put up for sale.

Relayfast has a convoluted 3 type share structure.But the 1 ordinary shares, one-third of which are owned by the five managers, rise in value disproportionately to the price paid for the company.

A rise of 500,000 from last year's 19.2m valuation would produce a 1 rise in each ordinary share.

Companies House show Relayfast, which has a turnover of 60m and employs 750 people, is structured with 8m of equity and about 11m of debt.

Most of the equity is preference stock owned by venture capitalists led by Hambro European Ventures. Some 170,000 of Hambro's 4m investment was in ordinary shares.