Disposal
March 27 2003 - 5:44AM
UK Regulatory
RNS Number:2760J
Mezzanine Group PLC
27 March 2003
Mezzanine Group plc ("Mezzanine" or the "Company")
Disposal of Attica Nightclub, Directorate Change and Update on Possible Offer
Disposal of Attica
Mezzanine is pleased to announce that Mezzanine Operations Limited and
Smollensky's Balloon Limited, both of which are subsidiaries of the Company have
disposed of the business and assets of Attica nightclub, 24 Kingly Street,
London ("Attica") to Soiram Limited ("Soiram") in consideration for payment of
#3,400,000. The assets consist of the remainder of the term of the lease of the
premises, associated fixtures and fittings, stock and goodwill. Proceeds from
the disposal will be used to reduce the Company's indebtedness and provide
additional working capital for the Group.
Marios Georgallides, who was the Chief Executive Officer of Mezzanine until
immediately prior to completion of the disposal of Attica by the Company, is a
director of Soiram. As a result of this relationship, the disposal of Attica is
classed as a related party transaction pursuant to Rule 12 of the AIM Rules. In
accordance with their obligations, the Directors excluding Marios Georgallides,
consider, having consulted their Nominated Adviser, that the terms of the
disposal are fair and reasonable as far as Mezzanine shareholders are concerned.
The total net asset value of Attica was #2,937,158 as at the completion date.
During the twelve months to 1 December 2002 Attica generated sales of #2,330,200
and earnings before interest, taxation, depreciation and amortisation of
#221,200.
Roddy Sutherland, Mezzanine's Chairman, commenting on the disposal said, "This
disposal is the second major step of the Company's well-documented strategy to
dispose of non-core assets and demonstrates the Board's commitment to this aim.
I expect to be able to announce further disposals in the coming months."
Directorate Change
Immediately prior to the disposal of Attica to Soiram, Marios Georgallides resigned from the Board and as Chief
Executive Officer of the Company with immediate effect. The Board would like to thank Marios for his contribution to the
Company and wishes him well in his role as a Director of Soiram.
Roddy Sutherland, Mezzanine's Chairman will now act in the dual role as the Company's Chief Executive Officer and
Chairman.
Update on Possible Offer
On 29 October 2001 the Company announced that two then current Executive Directors of the Company, namely Roddy
Sutherland and Marios Georgallides had informed the Company that they were examining the possibility of making an offer
for the entire issued share capital of Mezzanine. Although, no offer has been forthcoming to date, given the current
share price, Roddy Sutherland remains interested in making an offer for the entire share capital of Mezzanine. Roddy
Sutherland currently holds 11,800,312 ordinary shares and 2,000,000 share options, representing approximately 21.81 per
cent. of the issued share capital.
Furthermore, Marios Georgallides has informed the Company that he continues to remain interested in making an offer for
the entire share capital of Mezzanine. Marios currently holds 2,111,111 ordinary shares and 2,000,000 share options,
representing approximately 3.90 per cent. of the issued share capital.
Should an offer be forthcoming, the independent non-executive directors, in conjunction with the Company's Nominated
Adviser, will consider whether the offer is in the best interests of shareholders.
Further enquiries:
Roddy Sutherland, Chairman and CEO Mezzanine Group 020 7680 0400
Ben Brewerton Brunswick 020 7404 5959
This information is provided by RNS
The company news service from the London Stock Exchange
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