Business
Proposed disposal of Animal Protein Division
Proposed disposal of Animal Protein Division.
About this update from Roebuck Food Group Plc
[{"type":"text","content":"\n\nThe information contained within this announcement was previously deemed by the Company to constitute inside information as stipulated by Market Abuse Regulation (EU) No 596/2014 (\"EU MAR\") and the retained UK law version of EU MAR pursuant to the Market Abuse (Amendment) (EU Exit) Regulations 2019 (SI 2019/310) (\"UK MAR\"). With the publication of this announcement via a Regulatory Information Service, this information is now considered to be in the public domain\nRoebuck Food Group plc (\"Roebuck\" or \"the Company\")\nProposed disposal of Animal Protein Division\n1 August 2024\nRoebuck Food Group plc (AIM: RFG), is pleased to announce the sale of its animal protein business (\"the Disposal\") to Plunkett Matthews (\"the Purchaser\") for a consideration of £0.736 million. The consideration is made up of an equity value of £0.2 million (£0.1 million payable on completion and £0.1 million within 2 years of completion) and following the settlement of indebtedness and the operation of a completion accounts adjustment mechanism in the Share Purchase Agreement, this will also result in a reduction in Group indebtedness of £0.636 million. In addition, a further £300,000 may become payable within 5 years, subject to certain conditions.\nThe Disposal represents a fundamental change of business pursuant to AIM Rule 15 and as such is subject to the approval of Roebuck shareholders at an Extraordinary General Meeting (\"EGM\"), currently scheduled to be held on 29 August 2024. A circular setting out details of the Disposal and convening the EGM will be sent to shareholders shortly.\nIn its annual report for 2023, the Company noted its focus on delivering shareholder value through efficient capital allocation. The Purchaser made an approach to the Company, leading to discussions which have culminated in the Disposal.\nRoebuck's animal protein division, which is the subject of the Disposal, is comprised within its wholly-owned subsidiary Townview Foods Limited, incorporated in Northern Ireland with registered number NI035629, registered office at 7 Carrivekeeney Road, Newry, Co. Down, BT35 7LU and principal place of business at that address, from which it sources and procures fresh and frozen meat protein products for supply to major food manufacturing, wholesale, food service and retail companies across the world. For th...