Business
Proposed Sale of Government and Health Businesses
Proposed Sale of Government and Health Businesses.
About this update from Tribal Group Plc
[{"type":"text","content":"\n \nRNS Number : 6351E Tribal Group PLC 11 April 2011 \n \n\n11 April 2011 \nTRIBAL GROUP PLC\n \nProposed Sale of Government and Health Businesses\n \nThe Board of Tribal is pleased to announce that it has entered into a conditional agreement with The Capita Group Plc to sell its Government and Health Businesses for a total consideration of up to £15.87 million, of which £13.37 million is payable in cash on Completion with further cash consideration of up to £2.5 million payable on the satisfaction of certain conditions.\n \nThe sale is conditional upon the approval of Tribal Shareholders.\n \nTribal has been in an offer period under the City Code on Takeovers and Mergers (the \"City Code\") since 17 December 2010. The Company remains in an offer period and, accordingly, the Board confirms that the Disposal is being undertaken in accordance with note 1 to rule 21.1 of the City Code.\n \n \nHIGHLIGHTS\n \n· Proposed sale of Tribal's Government and Health Businesses for an initial cash consideration of £13.37 million, payable on Completion, and up to a further £2.5 million payable in cash on the satisfaction of certain conditions.\n \n· Government Business: Tribal supplies a range of strategic and operational advisory services to government clients in the UK, working principally across the home and foreign affairs, local government and social housing markets. Tribal also provides consultancy services in developing countries on behalf of government funded donor organisations.\n \n· Health Business: Tribal provides a range of services to the UK healthcare industry, from strategic advice to the provision of managed services to NHS and private healthcare clients. \n \n· In the audited consolidated accounts for Tribal in the year ended 31 December 2010, the Health Business and the Government Business had combined gross assets of £71.7 million and combined operating losses of £2.7 million, before goodwill impairment and exceptionals of £55.8 million, on turnover of £70.8 million. \n \n· Following completion of the proposed sale, Tribal will be focused on the education and training markets in the UK and internationally, providing a range of technology, inspe...