Disposal

RNS Number : 9929G

W.H. Ireland Group PLC

20 May 2011

 



WH Ireland Group plc

("WH Ireland" or the "Company")

Disposal of interest in WHI Australia Pty Limited

WH Ireland announces that it has today disposed of its entire interest in the share capital of its associate WHI Australia Pty Limited ("WHIA"), the holding company of the Perth based stockbroking company, DJ Carmichael Pty Limited ("DJC"). DJC is a specialist Australian stockbroker firm providing stock broking services, international market access, financial planning, wealth management and corporate finance advice.

Pursuant to this transaction (the "Disposal"), WH Ireland has:

·    disposed of its entire holding of ordinary shares in WHIA ("WHIA Shares"), consisting of 45,945 ordinary shares (equivalent to approximately 37.28% of the ordinary share capital of WHIA) to existing staff and shareholders, with the majority being acquired by management of WHIA, for a total cash consideration of AUD$1,194,570 (approximately £785,121); and

·    disposed of the redeemable preference share it holds in WHIA, to WHIA, for a cash consideration of £175,000.

The cash consideration has been received by WH Ireland in full and the sale proceeds will be used as additional working capital for the WH Ireland group..

During the year ended 30 November 2010, WH Ireland recorded a share of the profit attributable to its holding in WHIA of £44,805. The book value of WH Ireland's interest in WHIA as at 30 April 2011 was £1,557,337.

Following the Disposal, WH Ireland no longer has any interest in the share capital of WHIA. 

Rupert Lowe, Chairman of WH Ireland, has acquired 4,300 of the WHIA Shares from WH Ireland as part of the Disposal resulting in his shareholding in WHIA increasing from 8,400 WHIA Shares (representing approximately 6.82% of the ordinary share capital of WHIA) to 12,700 WHIA Shares (representing 10.30% of the ordinary share capital of WHIA).  Rupert, who did not take part in the negotiations or WH Ireland's board decision regarding the Disposal, will also remain on the board of WHIA.

Following the reduction in the level of WH Ireland's holding in WHIA in October 2009 from approximately 76.63% to approximately 37.28%, the investment was reviewed along with the other longer term investments.  The WH Ireland board decided that the funds employed in Australia could be better deployed in developing its core activities in the UK, including the further support of its recently established market making activities.  WH Ireland has enjoyed a good working and personal relationship with the WHIA team in Perth and the board are confident that this will continue as WH Ireland and WHIA work together in the future on mutually beneficial commercial opportunities following a long history of co operation.

Paul Compton, the Company's Chief Executive commented: "This Disposal is the latest in WH Ireland's programme of realising certain of its investments which has since the beginning of September 2010, resulted in the realisation of approximately £3.2m of cash.  As a result, all WH Ireland's bank overdrafts have been repaid and sufficient cash has been made available to develop our market making and CFD trading businesses."

For the purpose of this announcement an exchange rate of £1: AUD$1.52151 has been assumed.

For further information please contact:

WH Ireland Group plc	[phone]
Paul Compton
Panmure Gordon (UK) Limited	[phone]
Hugh Morgan/Abhishek Majumdar (Corporate Finance)
Adam Pollock (Corporate Broking)
Abchurch Communications	[phone]
Joanne Shears / Oliver Hibberd

 

END

 

 

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