Disposal

RNS Number : 6134A

Cenkos Securities PLC

02 April 2012

 



Cenkos Securities plc (Cenkos)

Disposal of controlling shareholding in Cenkos Channel Islands Limited.

Cenkos, the AIM quoted independent specialist institutional securities group focused on UK small / mid-cap companies and investment funds, announces its intention to divest of its controlling interest in Cenkos Channel Islands Limited (CCIL).

Following a strategic review, Cenkos has determined that CCIL, the Group's offshore fund and wealth management subsidiary, is not core to Cenkos' business strategy and operations. Cenkos has therefore today agreed with Huntress (CI) Nominees Limited (which is a nominee account for a number of underlying beneficiaries) and CCIL the disposal of 4 million ordinary shares in CCIL at £1 a share, representing 40 per cent. of CCIL's issued share capital. The £4.00 million in sale proceeds will provide additional working capital, further strengthening Cenkos' balance sheet. Following this disposal, Cenkos Securities will retain 10% of the issued share capital in CCIL as a trading investment, reflecting the fact that that Cenkos will continue to work with CCIL on business referrals.

CCIL's audited profits for the year to December 2011 were £0.89 million, which were consolidated into Cenkos' 2011 audited accounts. CCIL's audited net assets as at the end of December 2011 were £2.97 million. Cenkos expects to book a profit on sale of £2.60 million on disposal of this stake.

Cenkos established CCIL in 2005 and sold a third of its 75 per cent stake in December 2007, at which time CCIL also obtained a listing on the Channel Islands Stock Exchange (CISX).

The purchasers of the 40% stake now being sold include the following related parties:

-     CCIL Chairman, Andy Stewart (will purchase a further 4.53% of CCIL). He also holds 12.18% of Cenkos'   
      issued share capital

-     CCIL Chief Executive Officer, Jon Ravenscroft (will purchase a further 2.64% of CCIL). He also holds 0.70% of 
      Cenkos' issued share capital

-     CCIL non-executive Director, Susie Farnon (will purchase a further 0.56% of CCIL). She also holds 0.01% of 
      Cenkos' issued share capital

The Cenkos Board, having consulted with its nominated advisor, HSBC, believe that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned. Completion is expected to occur in mid April 2012.

Enquiries:

Jim Durkin

Chief Executive Officer

Cenkos Securities plc

Tel: [phone]

Nic Hellyer

HSBC

Tel: [phone]

David Rydell

Pelham Bell Pottinger

Tel: [phone]

 

END

 

 

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