Business
Disposal of Property to Ashtenne Holdings plc
Disposal of Property to Ashtenne Holdings plc.
About this update from Conduit Holdings Ltd.
[{"type":"text","content":"\n Creston PLC\n4 February 2000\n\n\nCRESTON PLC ('THE COMPANY')\n\nIntroduction:\n\nOn 19 November 1999, the Company announced that it was in discussions with\nAshtenne Holdings plc ('Ashtenne') in relation to the disposal of some or all\nof its property portfolio. Since that date the Company has already disposed of\ncertain properties for consideration of £4.2 million to third parties.\n\nThe Company and its subsidiaries (the 'Group') has now agreed terms with\ncertain subsidiaries of Ashtenne to dispose of a portfolio of properties ('the\nProperties') for consideration of £37.8 million ('the Disposal'). The net book\nvalue of the Properties in the Group's last audited accounts at 30 June 1999\nwas £36.8 million. Since that date, the Group has incurred further capital\nexpenditure of £2.0 million on the Properties. The net annual rental income\nattributable to the Properties is £3.2 million.\n\nIn view of its size the Disposal requires the approval of the Company's\nshareholders in general meeting. A circular will be posted to shareholders in\ndue course, containing details of the Disposal, information on the Properties\nand notice of an extraordinary general meeting to approve the Disposal.\n\nPrincipal terms of the Disposal:\n\nThe Disposal is subject to the approval of shareholders. Under the terms of\nthe disposal agreement, the consideration amounts to £37.8 million, including\nindebtedness of £2.7 million to be taken over by a subsidiary of Ashtenne in\nrelation to one property.\n\nThe balance of the consideration of £35.1 million is payable in cash as\nfollows:\n\na) £1.0 million was paid as a returnable deposit on (3) February 2000.\nb) £21.4 million is payable on (2) March 2000.\nc) £12.7 million is payable subject to certain conditions being met in\nrelation to four properties, by (3) May 2000 in respect of £2.4 million, by 24\nJune 2000 in respect of £7.5 million, and by (3) February 2001 in respect of\n£2.8 million. If these conditions are not met by the dates above, either the\npurchasers or the Group may rescind the disposal agreement in so far as it\nrelates to the respective properties.\n\nGroup prospects:\n\nFollowing the Disposal the Group will repay the remainder of its borrowings,\nafter which a substantial surplus of cash funds will remain. Steps will be\ntaken to reduce the Group's overheads to a level be...