Disposal of Interest

RNS Number : 3614P

Avisen PLC

14 July 2010

 



Avisen plc

("Avisen" or the "Company")

Disposal of interest in Avisen Pty Limited

Avisen plc (AIM:AVI) announces that its wholly-owned subsidiary, Avisen Group Limited, has agreed terms for the transfer of its entire interest in Avisen (Pty) Limited, its South African subsidiary, to Mr Keith Jones (the "Transaction"). Avisen (Pty) Limited is the provider of Avisen's advisory and consulting services in South Africa.

Following the merger with Xploite plc, Avisen's board carried out a strategic review and this disposal reflects Avisen's revised strategy of focusing the Company and its activities on the increased opportunities arising principally within the UK. The financial performance of the South African business is not material to that of the Company.

In consideration for the transfer the Company shall receive, subject to the approval of shareholders, 3,500,000 ordinary shares in the Company currently held by Odette McMahon, a related party of Mr Jones (the "Consideration Shares").  Upon completion of the transfer the Consideration Shares shall be retained by the Company and held in treasury.

The acquisition of the Consideration Shares requires the approval of the shareholders of the Company under section 694 of the Companies Act 2006 as an off-market purchase by the Company of its own shares; that resolution will be proposed at the next Annual General Meeting of the Company.

Marcus Hanke, CEO of Avisen commented: "The merger with Xploite has allowed us to create and pursue a new business plan which will see us concentrate on the ever growing market opportunities in the UK. The disposal of the South African business is a consolidatory step towards Avisen's future aims and ambitions."

Mr Jones is a director of Avisen (Pty) Limited and, accordingly, the Transaction is deemed to be a related party transaction for the purposes of the AIM Rules for Companies. The directors of the Company, all of whom are independent of the Transaction, consider, having consulted with Brewin Dolphin Limited, the Company's Nominated Adviser, that the terms of the Transaction are fair and reasonable insofar as the Company's shareholders are concerned.

For further information:

Avisen PLC Marcus Hanke, CEO Claire Milverton, Interim CFO	0870 880 2978
Brewin Dolphin Matt Davis Neil McDonald	0845 213 1000
Hansard Communications Justine James Guy McDougall	020 7245 1100

 

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