Business
Disposal
Disposal.
About this update from Primorus Investments Plc
[{"type":"text","content":"\n RNS Number : 9541W CSS Stellar PLC 18 June 2008 \n \n18 June 2008\nCSS Stellar Plc\n\nDisposal of interest in subsidiary\n \nThe Directors of CSS Stellar plc ('CSS') are pleased to announce that CSS has agreed to dispose of its wholly owned subsidiary, The Peters Fraser & Dunlop Group Limited ('PFD') to PFDH Limited, a newly formed company backed by a consortium of investors led by Andrew Neil. PFD is one of the UK's oldest and largest talent management agencies with offices in London and New York.\n\nThe decision to dispose of PFD followed an operational review by the CSS board, in which it became clear that there are no benefits to continuing to develop the activities of PFD and CSS's other operations within the same group. The Directors concluded that it is in the best interests of CSS shareholders for the Group to focus on the core business of Sports Marketing and Events and to effect a disposal of PFD.\n \nTotal consideration is a maximum of £4.0 million, of which £3.75 million is payable in cash on completion, with the balance of £0.25 million payable in cash in 2011 dependent on PFD's earnings in the three years to 2010.\n\nPFD's operating profit for the year ended 31 December 2007 was £0.4 million (2006: £0.7 million) on turnover of £9.4 million (2006: £9.3 million), with net assets at 31 December 2007 of £1.7 million (2006: £1.4 million). The disposal is expected to generate a profit of £3.4 million before write off of goodwill of £3.6 million.\n\nDue to the size of PFD relative to the CSS Group, the sale is conditional on the approval of the CSS shareholders at an Extraordinary General Meeting ('EGM') to be held on Monday 7th July 2008. A circular containing further details of the transaction and formally convening the EGM is expected to be posted to shareholders on Friday 20th June 2008. \n\nSubject to the approval of the shareholders, it is expected that completion will take place following the EGM. The proceeds from the sale will be used to reduce the Group's borrowings and for reinvestment in group acti...