Character Group PLC
25 January 2006
Issued on behalf of The Character Group plc
Date: Wednesday, 25 January 2006
IMMEDIATE RELEASE
The Character Group plc
('Group' or 'Company' or 'Character')
Proposed sale of Character Group's Digital Division
Following the Group's announcements dated 9 January 2006 and 19 January 2006,
the Board of The Character Group plc announces that contracts have today been
exchanged with Flextronics Sales and Marketing (A-P) Limited ('Flextronics') for
the sale of the Group's Digital business, trading under the name World Wide
Licences Limited ('WWL').
The consideration for the Digital business is US$16 million for the goodwill and
an additional sum for the closing inventory, which will be determined on
completion of the transaction, which is expected to be in February 2006.
WWL, based in Hong Kong, is a wholly owned subsidiary of the Group and is
engaged in the design, development and manufacture of digital products, which
principally consist of digital cameras in addition to managing the Hong Kong and
Chinese logistics for the overall Group. The Group shall continue to have a
presence in Hong Kong which together with its new facilities in Shenzhen, China
will enable the Group to continue the growth of its Toys, Games and Gifts
business.
Commenting on the proposed sale of the Digital business, Richard King, Chairman
of the Group, said:
'The sale of the Digital business will allow the Group to focus entirely upon
the development of its toys, games and gifts business which has, and continues
to have, a number of very exciting opportunities to build on our strong
performance to last Christmas.'
'The Directors also consider that a sale is a better option for the Group than a
de-merger, which was previously under consideration.'
'The Board is confident that Flextronics is uniquely placed to develop the
digital business to a far higher level than Character could achieve in the same
timescale.'
'The proposed sale of the Digital business is believed to be in the best
interests of the Group's shareholders but, as importantly, it gives more
opportunity and future development for the employees within WWL who have played
a significant role in developing the business to date.'
'We are delighted that The Character Group plc has accepted our offer to
purchase its digital business' stated Peter Tan, President and Managing Director
of Flextronics Asia.
Mr Tan added: 'WWL's talents will provide us with an exciting opportunity to
further enhance our capabilities that further support our penetration into the
consumer products market'
The proposed sale of the Digital business of WWL is subject to shareholder
approval. A Circular, containing full details of the proposed sale of the
Group's Digital business together with details of the EGM, will be posted to
shareholders shortly.
Enquiries:
Richard King, Chairman Fiona Tooley, Director
Kiran Shah, Group Finance Director Katie Dale, Senior Account Manager
The Character Group plc Citigate Dewe Rogerson
Tel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370
Mobile: +44 (0) 7836 250150 (RK) up to 12 noon Mobile: +44 (0) 7785 703523 (FMT)
Mobile: +44 (0) 7956 278522 (KS) Mobile: +44 (0) 0770 788624 (KD)
www.thecharacter.com
This information is provided by RNS
The company news service from the London Stock Exchange