Disposal
April 11 2003 - 3:40AM
UK Regulatory
RNS Number:9259J
Seymour Pierce Group PLC
11 April 2003
11th April, 2003
FOR IMMEDIATE RELEASE
Seymour Pierce Group Plc
Seymour Pierce Group Plc (the "Group") - Disposal of its investment banking
division ("Investment Banking")
Further to the announcements of 29 November 2002 and 21 March 2003 regarding a
possible offer for the Group and further possible offers for Investment Banking,
the Group today announces that it has entered into a contract for the disposal
of Investment Banking to Alchemy Partners and a management team led by Keith
Harris, currently Chairman of the Group, and Richard Feigen, who is head of
Investment Banking.
Investment Banking comprises the corporate finance, corporate broking,
institutional sales, research and trading, and private client stockbroking
businesses of Seymour Pierce Limited and Seymour Pierce Ellis Limited. Under the
terms of the transaction, the name Seymour Pierce and all rights to the trading
name will be transferred.
The consideration, which is payable in cash on completion, is #7.35 million. It
comprises payment for net assets of approximately #4.35 million and goodwill of
#3.00 million. The loss before tax attributable to these assets in the year
ended 30 September 2002 was #0.49 million.
Depressed markets and uncertainty in respect of the international situation
continue to negatively affect the business. Given this background, the board
believes the strategic review currently underway is the best way of maintaining
value for all our shareholders. The disposal of Investment Banking will increase
the cash balances of the Group and will immediately strengthen the position of
shareholders.
As a result of these changes Richard Feigen will resign on completion as a
director of the Group. Keith Harris and the other board members will remain with
the Group to see through the strategic review.
The disposal of Investment Banking is a related party transaction under the AIM
Rules. The independent directors of the Group, who exclude Keith Harris, Richard
Feigen and Nigel Wray, (the "Independent Directors") consider, having consulted
the Group's Nominated Adviser, the investment banking division of ING Bank N.V.,
London branch ("ING Barings"), that the terms of the disposal of Investment
Banking are fair and reasonable insofar as the shareholders of Seymour Pierce
Group Plc are concerned. In giving its advice to the Independent Directors of
the Group, ING Barings has taken into account the Independent Directors'
commercial assessments.
The disposal is conditional upon receiving regulatory change of control
approval.
As announced on 21 March 2003, it remains the board's intention to return
substantially all of the Group's cash to shareholders, subject to the successful
completion of the strategic review and necessary approvals.
Enquiries:
Jeremy Garrett-Cox ING Barings 020 7767 1000
David Bick Holborn 020 7929 5599
ING Barings, which is regulated in the United Kingdom by The Financial Services
Authority, is acting exclusively for Seymour Pierce Group Plc and no one else in
connection to the matters described in this announcement and will not be
responsible to anyone other than Seymour Pierce Group Plc for providing the
protections afforded to its customers or for providing advice in relation to the
contents of this announcement or any transaction or arrangement referred to
herein.
This information is provided by RNS
The company news service from the London Stock Exchange
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