Business
Proposed Disposal of the Norwegian Business
Proposed Disposal of the Norwegian Business.
About this update from Domino's Pizza Group Plc
[{"type":"text","content":"\n \nRNS Number : 8507C Domino's Pizza Group PLC 13 February 2020 \n\n \n \n \nLEI: 213800Q6ZKHAOV48JL75 \n13 February 2020\n \nDomino's Pizza Group Plc\nProposed Disposal of the Norwegian Business\n \nDomino's Pizza Group plc (\"DPG\" or the \"Company\"), is today announcing that, conditional on shareholder approval, it has agreed to sell its entire shareholding in DP Norway AS (\"Domino's Norway\" or \"DPN\") to Pizza Holding AS and EYJA Fjarfestingafelag III EHF, the existing minority shareholders (\"Minority Shareholders\") in Domino's Norway.\nTransaction Summary\n· Provides a complete exit for DPG from Norway for a cash outlay of up to £7.0 million, in addition to funding DPN's losses to completion \n \no DPN reported an underlying operating loss before tax of £6.6 million for the year ended 31 December 2018\n \n· Facilitates an orderly exit from PPS Foods AB (\"Domino's Sweden\" or \"DPS\") in due course through the transfer of minority shareholdings in DPS to DPG as part of the transaction\n \n· Transaction subject to shareholder approval and has unanimous support from the Board of Directors of the Company who intend to recommend that shareholders vote in favour of the resolution(s) to approve transaction at a General Meeting to be convened in due course\n \nDetails of the Transaction \n· DPG to sell its 71% interest in Domino's Norway to the Minority Shareholders for consideration comprised of a combination of the payment of a nominal amount (NOK 1) in cash and the transfer by the Minority Shareholders' of their entire shareholdings in Domino's Sweden to DPG (which will result in DPG owning 100% of Domino's Sweden) (the \"Transaction\"). \n \n· DPG will fund DPN for the period up to Completion inclusive of a marketing campaign of NOK 6 million (£0.5 million). Such funding, alongside the existing intercompany receivable owed by DPN of NOK 360.4 million as at 31 December 2019 (approximately £30.0 million) will be converted into one share in Domino's Norway and transferred to the Minority Shareholders at Completion as part of the Company's shareholding in DPN. The equitisation of the existing intercompany receivable will have no cash impa...