Investment in Joint Venture

RNS Number : 7775T

Leeds Group PLC

06 July 2018

 

Leeds Group plc

Investment in Joint Venture

("Leeds Group" or the "Company")

Leeds Group plc announces that it has reached an agreement to terminate the joint venture investment in Stoff-Ideen-KMR GmbH ("KMR") between its German subsidiary, Hemmers/Itex Textil Import Export GmbH ("Hemmers") and Mr Maat.  KMR will acquire Mr Maat's 50% shareholding in KMR for a total consideration of €500,000 (£442,000), to be paid €250,000 (£221,000) in cash and the balance being three shops at a value of €250,000 (£221,000). Mr Maat will resign as a director of KMR with immediate effect with no further costs to be incurred. Hemmers will retain its shareholding in KMR and become the sole owner. The transaction was completed on 5^th July 2018.

KMR is a retailer of fabric and haberdashery, operating shops located throughout Germany. Hemmers original investment of 50% in KMR was made on 31 December 2014 and the investment was included in Hemmers accounts 31 May 2017 at a value of £832,000.  KMR's sales revenue in the financial year ended 31 May 2017 was €10,849,000, and its pre-tax profit was €111,000. The net assets of KMR amounted to €2,174,000.

Mr Maat is a director of KMR and as such he is considered to be a related party of the Company as defined in Rule 13 of the AIM rules for Companies. The Directors of the Company consider, having consulted with the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

The directors of Leeds Group believe that this is in the best interest of KMR and the Group by improving synergies and growth going forward.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (MAR) and has been arranged for release by Jan G Holmstrom, Chairman.

Enquiries:

Leeds Group plc

Dawn Henderson

07747 777055

Cairn Financial Advisers LLP

Tony Rawlinson / Liam Murray

020 7213 0880

 

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