Business
Savills Buys B Member Interes
Savills Buys B Member Interes.
About this update from Savills Plc
[{"type":"text","content":"\n RNS Number : 1307I Savills PLC 05 March 2010 \n \n\n \n5 March 2010\n \n \n \nSavills plc\n \nProposed Acquisition of Member Interests in Cordea Savills LLP \n \nSavills plc (\"Savills\" or the \"Company\"), the international real estate advisor, today announces that its wholly owned subsidiary, Savills Investments, which holds 60% of the voting rights in Cordea Savills LLP (\"Cordea Savills\"), the Group's fund management business, has entered into a conditional agreement with the other members who hold voting rights in Cordea Savills to acquire their B Member Interests, which represent 40% of the voting rights in Cordea Savills (the \"Proposed Transaction\").\n \nKey highlights\n \n\n\n\n\n●\n\n\nTotal consideration of up to £15.4m of which £4.6m will be paid on transaction close with another £4.5m payable in equal instalments on the first and second anniversaries, and up to a further £6.3m on the second anniversary subject to Cordea Savills' earnings performance over the period\n\n\n\n\n●\n\n\nAll consideration payments will be settled in cash out of existing resources, including debt facilities\n\n\n\n\n●\n\n\nKey employees are incentivised to remain with the business and improve Cordea Savills' profitability \n\n\n\n\n●\n\n\nProposed Transaction gives Savills ownership over Cordea Savills, which in turn ensures the stability of the platform for future expansion whilst retaining its operational independence\n\n\n\n\n●\n\n\nAnticipated to be immediately earnings enhancing\n\n\n\n\n \nThe Proposed Transaction is a related party transaction (as defined in Chapter 11 of the UKLA Listing Rules) and so is conditional upon shareholder approval, which will be sought at the General Meeting to be held on 24 March 2010. The Proposed Transaction is not subject to any further conditions. A circular in relation to the Proposed Transaction and convening the General Meeting is expected to be published and posted to shareholders today. \n \nJeremy Helsby, Group Chief Executive of Savills, commented:\n\"Cordea Savills has been very successful since it was founded nearly six years ago. This transaction demonstrates our long term commitment to the fund management business and is a natural part of the evolution of Cordea Savills. I am delighted that we will have a structure which enables...