Deferred consideration payable

RNS Number : 6113C

Mulberry Group PLC

03 May 2012

 



Mulberry Group plc

Deferred consideration payable

On 14 May 2009 Mulberry Group plc ("Mulberry") announced details of an agreement with its then US partner to terminate the existing joint venture arrangements allowing Mulberry to take full control of the wholesale and retail sales of Mulberry products in the key US market.  The US partner was called Mulberry USA LLC , a limited liability partnership between Mulberry and a company under the control of the owners of Challice Limited ("Challice") which owns approximately 56% of the issued share capital of Mulberry.

Under the terms of the termination agreement Mulberry agreed inter alia to pay Challice deferred consideration of up to £1m (either in cash or shares at Mulberry's option) if sales generated from the US market during the third year post completion exceeded an agreed threshold of $6m which was approximately twice the turnover generated in the US market in the year prior to the termination of the joint venture arrangements.

Mulberry confirms that the agreed threshold was exceeded comfortably and accordingly the sum of £1m cash has been transmitted to Challice. Following this payment no further consideration is payable under the termination agreement.

For further details please contact:

Pelham Bell Pottinger Dan de Belder	0207 861 3232
Mulberry Investor Relations Amelia Fincher	0207 605 6771
Altium Ben Thorne	0207 484 4076
Barcap Jon Bathard-Smith Nicola Tennent	0203 134 9803

 

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