Business
Disposal
Disposal.
About this update from Parkmead Group Plc
[{"type":"text","content":"\n Parkmead Group (The) PLC\n08 November 2007\n\nThursday 8 November 2007\n\n\n\n THE PARKMEAD GROUP PLC\n ('Parkmead' or the 'Group')\n\n Sale of Quayside Corporate Services Limited ('Quayside')\n\nThe Board of Parkmead (the 'Board') is pleased to announce the sale of Quayside\nto David Mills for an initial cash consideration of £0.63 million plus a\ndeferred cash payment of up to £1.97 million payable by 8 November 2008. David\nMills is a former Director of Parkmead and a significant shareholder in\nParkmead, accordingly he is considered a related party for this transaction.\n\nQuayside provides turnaround consulting services to businesses which have\ndeveloped trading difficulties. The effect of this sale on Parkmead will mean\nthat the Group is now wholly focused on the energy sector. Proceeds from the\nsale will form part of the resources for making principal investments in energy\nbased assets.\n\nThe net assets of Quayside which are being disposed of as a part of this\ntransaction as at 30 June 2007 were (negative) £0.15 million. During the year\nended 30 June 2007 Quayside reported a loss of £0.19 million. As at 30 June\n2007, the goodwill generated on the original acquisition of Quayside was valued\nin the audited accounts of the Group at £2.68 million. In the Preliminary\nResults announced on 27 September this year the unpredictable nature of the\ndistressed company debt markets in which Quayside operates was noted. Having\nregard to this and the future prospects of Quayside the Board has concluded that\nthe sale of Quayside is in the best interests of the Group and that the\nconsideration received is satisfactory.\n\nIn order to satisfy the initial cash consideration Mr Mills has today agreed to\nsell a total of 12,611,009 Ordinary Shares in Parkmead at a price of 5p. Of the\n12,611,009 shares sold by Mr Mills 2,000,000 have been purchased by Mr Colin\nGoodall, 1,000,000 shares by Mr John Leggate, 4,000,000 by Mr Tom Cross and\n200,000 by Mr Gordon Ashworth who are each a Director of the Group. Additionally\nMr Iain Rawlinson, a Director of one of the Group's subsidiaries, Radius Energy\nLimited, purchased 4,000,000 shares. Accordingly Mr Mills, Mr Goodall, Mr\nLeggate, Mr Cross, Mr Rawlinson and Mr Ashworth now have the following\nbeneficial interest in the Group:\n\n\n Number of Ordinary Shares % of existing Sh...