Business
Proposed Disposal
Proposed Disposal.
About this update from Caffyns Plc
[{"type":"text","content":"\n \nRNS Number : 4070S Caffyns PLC 17 March 2016 \n\nCaffyns Plc\n(Caffyns\" or the \"Company\")\n \nProposed disposal (the \"Disposal\") of the Company's Land Rover Dealership in Lewes, East Sussex (the \"Land Rover Business\")\n \nCaffyns announces that it has entered into an agreement (the \"Sale and Purchase Agreement\"), conditional upon the approval of holders of the Company's Ordinary Shares (\"Ordinary Shareholders\"), to sell the business and assets (excluding the freehold property) of the Land Rover Business to Harwood Limited (the \"Buyer\"). The consideration for the Land Rover Business, payable on completion of the Disposal, which is expected to be 29 April 2016 (\"Completion\"), is £5.7 million plus an amount to be agreed at Completion for vehicle and parts stock in the Land Rover Business at Completion (the \"Consideration\"). \n \nThe Company has been informed that its current five year contract with Jaguar Land Rover Limited (\"JLR\") as an authorised dealer of new Land Rovers will not be renewed when it expires on 31 May 2016. The board of the Company (the \"Board\") therefore believes that the Disposal represents the best value for the Company and its shareholders as a whole.\nHighlights\n \n· Cash consideration for the Disposal of £5.7 million plus an amount for stock to be established at Completion. For illustrative purposes the value of vehicle and parts stock in the Land Rover Business at 29 February 2016 was £3.2 million;\n \n· The Consideration will be used to reduce the Company's overall borrowings significantly in the short term, with the flexibility to reinvest in the ongoing Caffyns businesses following Completion (the \"Continuing Business\");\n \n· Ownership of the freehold property in Lewes from which the Land Rover Business operates (the \"Property\") will remain with the Company, and will be leased to the Buyer for a period of up to three years from Completion subject to a two year tenant only break clause (the \"Lease\");\n \n· Completion of the Disposal, which is a Class 1 Transaction under the Listing Rules, is conditional upon Ordinary Shareholder approval, to be sought at a general meeting of the Company to be convened for 2:30 p.m. on 21 April 2016 at 4 ...