Business
Globiva Divestment
Globiva Divestment.
About this update from Cpp Group Plc
[{"type":"text","content":"\n\n27 November 2023\nCPPGroup Plc\n(\"the Group\"; or \"the Company\")\n \nGlobiva Divestment\n \nCPP Group (AIM: CPP), a provider of real-time assistance products and resolution services which reduce disruptions to everyday life for millions of customers across the world, has entered into an agreement (the \"Agreement\") with the founders of Globiva Services Private Ltd (\"Globiva\") for the disposal of the Group's majority interest in Globiva for an aggregate consideration of approximately £5.1 million1 (the \"Transaction\"). Globiva is non-core to the Group following the announcement of its revised strategy and Change Management Programme (\"CMP\") in October 2022 to transform the Group to an InsurTech business, led by Blink Parametric (\"Blink\").\n \nBackground\nThe Group holds a 51% majority interest in Globiva, a Business Processes Management company incorporated in India, with the other 49% of the shares beneficially owned by the three founders of Globiva, Navneet Gupta, Vikram Singh Nathawat, and Ashish Goyal, who continue to manage the business (the \"Globiva Founders\").\n \nUnder amended arrangements entered into on 20 July 2022, the Globiva Founders had the option to buy back 10% of the ordinary shares in Globiva, from the Group, for a pre-agreed price of approximately £0.9 million. This was subject to Globiva meeting certain performance targets, which it is on track to achieve. However, in the normal course of business, it was further agreed that this could not be triggered until 1 January 2026 at the earliest. This Agreement supersedes the previous arrangements.\n \nTransaction Rationale\n· The Transaction is consistent with the Group's stated strategy to transform the Group to an InsurTech business led by Blink and supported by India and Turkey.\n· The Group is currently a \"trapped\" investor in Globiva with limited options to realise value. In addition, the Group was likely to become a minority shareholder (January 2026) and consequently would have lost majority voting rights on key strategic decisions. The Transaction provides an exit path for the Group at an acceptable return.\n· The Transaction provides cash flow, not previously forecast, over a three-year period to support the Group's CMP.\n&n...