Business
Payment of Deferred Consideration
Payment of Deferred Consideration.
About this update from Smiths News Plc
[{"type":"text","content":"\n \nRNS Number : 5012S Connect Group PLC 21 December 2016 \n\n \n21 December 2016\nConnect Group PLC\n(\"Connect Group\" or \"the Company\")\n \nPayment of deferred consideration pursuant to the acquisition of Tuffnells Parcels Express\n \nPursuant to the Connect Group announcement dated 19 December 2014 in respect of the acquisition of the entire issued share capital of The Big Green Parcel Holding Company Limited, whose principal subsidiary trades as Tuffnells Parcels Express (\"Tuffnells\"), the Company today announces the payment of the applicable deferred consideration for the second year of the three-year earn-out period to the Tuffnells Management Sellers and Option Sellers, in light of Tuffnells' financial performance in FY2016.\nAccordingly, pursuant to the acquisition terms, the Group will pay further deferred consideration of approximately £1,666,646 to the Tuffnells Management Sellers and Option Sellers by means of (i) the payment of £983,324 in cash; and (ii) the allotment and issue of a total of 394,007 new ordinary shares in the Company (the \"New Ordinary Shares\") together with a separate payment of £71,709 in cash representing the value of dividend equivalents that would otherwise have been payable in the relevant earn-out period on the number of New Ordinary Shares being issued. The New Ordinary Shares will rank pari passu with the existing ordinary shares of the Company. The maximum amount of the deferred consideration payable to Tuffnells Management Sellers and Option Sellers over the three-year earn-out period is £15.3 million. Due to changes within the composition of the original Tuffnells management team, the Company currently anticipates that the proportion of the deferred consideration to be received by the Tuffnells Management Sellers and Option Sellers through the issue of new ordinary shares in the Company will be approximately 38 per cent. of this amount. \nThe Financial Conduct Authority (the \"FCA\") has approved the admission of the New Ordinary Shares to the Official List and the London Stock Exchange has granted permission for the New Ordinary Shares to be admitted to trading (\"Admission\"). It is expected that Admission will become effective on 22 December 2016.\nThe New Ordinary Shares represent approximately 0.16 per cent. of the enlarged issued share capital of t...