Regarding FARES JV

RNS Number : 6014B

Experian plc

29 October 2009

 



news release 

Election of FADV shares and agreement in principle of amended terms for FARES joint venture 

29 October 2009 ─Experian, the global information services company, announces the following arrangements in respect of FARES, the joint venture company, owned 20% by Experian and 80% by First American, and in respect of First Advantage Corporation (FADV), an associate of FARES.  

Exchange offer for FADV shares 

On 29 June 2009, First American announced that it had made an offer to acquire the issued and outstanding shares of Class A Common Stock of FADV in consideration for shares in First American (note 1 below). Experian announces that it has elected to tender both its direct and indirect holdings in exchange for shares in First American.  

Experian's direct and indirect holdings in FADV shares amount to 3,784,642 shares, approximately US$69m by value, based on a FADV share price of US$18.24 on 27 October 2009. Upon exchange and conversion, Experian will hold approximately 2% of the total issued share capital of First American. 

Amendment of terms for Experian's stake in FARES joint venture 

1. Disposal of Experian's indirect interests in FARES' plant management and imaged document business 

Experian has come to agreement in principle in respect of two assets that form part of FARES, such that FARES will dispose of its interest in these two assets to First American. On completion, Experian will receive a cash consideration of US$48m. 

2. Amendment of buy-out agreement over the remaining assets of FARES 

Experian and First American have agreed in principle to amend the buy-out arrangements governing Experian's 20% interest in the balance of FARES, excluding the plant management and imaged document business and FARES' interest in FADV. Under the amended terms, the arrangement provides that if exercised in 2010, the cash consideration payable to Experian is approximately US$314m, payable by 31 December 2010. After 2010, the consideration payable for Experian's 20% interest in FARES will revert to a set valuation multiple, consistent with the current terms. 

Notes to editors 

• On 29 June 2009, First American announced an offer to acquire the issued and outstanding shares of Class A Common Stock of FADV in consideration for shares in First American. Under the terms of the exchange offer, 1 FADV share will be exchanged for 0.58 shares of First American. 

• First American has previously announced its intention to separate its business in the first half of calendar 2010 to create two new companies in Information Solutions and Financial Services. 

• In the year to March 2009, Experian's share of EBIT in FARES was US$48m and profit after tax was US$29m, including tax arising in Experian. On a pro forma basis, excluding the plant management, imaged document business and FARES' interest in FADV, Experian's share of EBIT in FARES was US$38m. 

Contact
Experian  Nadia Ridout-Jamieson	Director of Investor Relations	[phone]
Alex Brog	Head of Media Relations
Finsbury Rollo Head		[phone]

Experian announcements are available on www.experianplc.com 

About Experian 

Experian is the leading global information services company, providing data and analytical tools to clients in more than 65 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.  

Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2009 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil. 

For more information, visit http://www.experianplc.com. 

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