Acquisition of Minority Interest

RNS Number : 3355P

Driver Group plc

01 October 2013

 



1 October 2013

Driver Group plc

("Driver Group" or the "Company")

Acquisition of Minority Interest

Driver Group, the global consultancy to engineering and construction industries, is pleased to announce further developments in its Africa business. The Company has acquired the remaining 49% shareholding of Driver Group Africa Pty from SADC Project Consulting (Pty) subject to a condition precedent that the authorities issue the appropriate Exchange Control confirmations in due course. This takes the Company's shareholding in Driver Group Africa Pty to 100%.

The initial cost of the acquisition is ZAR 3.3m (£0.2m) satisfied in cash and a further ZAR 2.7m (£0.17m) satisfied by grant of options over Driver Group shares. Further consideration, to be satisfied by the grant of options over additional shares, will be payable based on the audited net profits of the consolidated Africa business as at 30 September 2013. Thereafter, dependent upon profitability of Driver Group Africa Pty from 2014 to 2016 and lock-in arrangements of two key directors, additional consideration (satisfied by the grant of options over shares) may be payable under the terms of the agreement. The total maximum consideration (including the initial consideration) is capped at ZAR 3.3m (£0.2m) in cash and share options with a value up to ZAR 12.9m (£0.8m). The maximum number of shares under option pursuant to the terms of the agreement will be calculated by reference to the closing price of a Driver Group share on 1 October 2013.

Dave Webster, Chief Executive Officer of Driver Group said: "This transaction is a great deal for Driver. The initial cost is more than covered by the balance sheet and future costs are paid out of retained profits. On an operational perspective, we have full control and leadership commitment in the Region with the two key directors from SADC transferring over as employees of Driver Group Africa which will ensure we can more efficiently serve our current and future clients as well as delivering better shareholder value."

Enquiries:

Driver Group plc

David Webster, Chief Executive                                                                               Tel: [phone]

Damien McDonald, Group Finance Director

Alan McClue, Non-executive Chairman                                                                 Tel: [phone]

Charles Stanley Securities

Nominated Adviser & Broker

Marc Milmo / Carl Holmes                                                                                            Tel: [phone]

 

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