Business
Proposed sale of Majestic Retail and Commercial
Proposed sale of Majestic Retail and Commercial.
About this update from Naked Wines Plc
[{"type":"text","content":"\n \nRNS Number : 6672H Majestic Wine PLC 02 August 2019 \n\nTHE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION.\n \n2 August 2019\nMajestic Wine PLC\n \nProposed sale of Majestic Retail and Commercial and related assets\nfor approximately £100 million\n \nMajestic Wine PLC (\"Majestic\", the \"Group\" or the \"Company\") today announces that it has entered into an agreement to sell Majestic Wine Warehouses Limited (\"MWWL\") and Les Celliers de Calais S.A.S. (\"LCDC\"), which together comprise the Majestic Retail and Commercial businesses (\"Majestic Retail and Commercial\") to CF Bacchus Holdings Limited (\"BidCo\"), a vehicle controlled by funds managed by Fortress Investment Group LLC, for a total consideration of £95m (the \"Disposal\").\n \nA separate sale of one freehold property previously owned by MWWL to an independent third party is expected to realise a further £5m subject to approval of a planning application for redevelopment, bringing total proceeds to approximately £100m.\n \nThese transactions represent a major milestone in the Group's history, enabling the Board to focus on driving growth in the Naked Wines business (\"Naked\"), which has a disruptive online model and operates in fast growing markets.\n \nHighlights\n● Binding agreement to sell the combined Majestic Retail and Commercial businesses for a total consideration of £95m:\no BidCo will pay initial cash consideration of £78m for the shares of MWWL and LCDC, the two companies through which Majestic Retail and Commercial trade;\no An additional £5m of consideration payable in cash is deferred for two years, and contingent on the post-Brexit regulatory landscape and performance of LCDC (comprising the Group's French operations);\no A further £12m of consideration will be retained by BidCo in the form of a loan note (the \"Loan Note\") which will be an unsecured interest-bearing loan from the Company to BidCo due to be repaid by no later than five years from completion of the Disposal;\no The Disposal is conditional on the approval of the Group's shareholders at a General Meeting, EU regulatory clearance and satisfactory transfer of MWWL's bonding arrangements; and\no&...