Business
Strategic Partnership Transaction in Taiwan
Strategic Partnership Transaction in Taiwan.
About this update from International Workplace Group Plc
[{"type":"text","content":"\n \nRNS Number : 5274I IWG PLC 09 August 2019 \n\nNot for release, publication or distribution, in whole or in part, in or into any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdictions.\n \nThis announcement contains inside information in relation to IWG plc\n \n9 August 2019 \n \nIWG plc (\"IWG\" or the \"Group\")\n \n Strategic Partnership Transaction in Taiwan\n \nIWG, the global operator of leading co-work and workspace brands, is pleased to announce that it has entered into a second strategic partnership with TKP Corporation (\"TKP\"). IWG will divest its Taiwanese operations to TKP and the parties have agreed an exclusive master franchise agreement for the country (the \"Transaction\"). The Transaction follows the analogous deal, agreed between IWG and TKP in April 2019, in respect of the divestment of IWG's Japanese operations to TKP and related franchise agreement in respect of the Japan market.\n \nIWG and TKP have entered into a definitive sale and purchase agreement for the entire outstanding capital contributions of IWG's Taiwanese subsidiaries, which together, consist of 14 flexible co-work centres. IWG will receive gross consideration of £22.7 million payable in cash at completion, subject to completion accounts adjustments for cash, debt and working capital. Completion is expected to occur in September 2019 and is conditional only on the approval of the Transaction by the Taiwanese Investment Commission of the Ministry of Economic Affairs. \n \nThe long term master franchise agreement entered into by the parties provides TKP with exclusive rights to the use of the HQ, Regus and SPACES brands in Taiwan, and allows TKP to continue to operate the Taiwanese centres under IWG's brands and operating platform. As with the Japanese partnership signed earlier this year, under the Taiwanese agreement: (i) TKP has committed to a development plan which will add significantly to IWG's centre network in Taiwan, and (ii) IWG (as master franchisor) has committed to provide on-going services and support to TKP (as master franchisee) in return for an on-going platform fee linked to system-wide revenues in Taiwan.\n \nThe Transaction further demonstrates the strong momentum in IWG's franchising strategy and the interest from ...