Disposal

RNS Number : 0205E

CPPGroup Plc

03 May 2013

 



Completion of Transaction

03 MAY 2013

CPPGroup Plc ("CPP" or the "Group") today announces that, following shareholder approval of the disposal of the Group's North American business to AMT Warranty Corp. for a total cash consideration of $40 million (approximately £26.1 million) (the "Transaction") as announced by the Group on 3 May 2013, all conditions have been satisfied and the Transaction has now completed in accordance with its terms.

As previously announced on 17 April 2013, the Group has agreed an extension of its existing bank facility on amended terms with its existing lenders (the "Amended Facility"). The Group will apply £16.5 million of the net proceeds from the Transaction to prepay the Amended Facility in part. The remaining net proceeds from the Transaction, together with funds available under the Amended Facility, will be used to provide additional working capital to the Group in the short term.

The disposal is part of a series of related measures being pursued by the Board with a view to securing the future viability of the Group in the interests of all stakeholders.

A copy of this announcement is available on the Company's website at www.cppgroupplc.com.

Enquiries:

CPPGroup Plc

Paul Stobart, Chief Executive Officer

Shaun Parker, Chief Financial Officer

Tel: [phone]

Helen Spivey, Head of Corporate and Investor Communications

Tel: [phone]

Sponsor

Greenhill & Co. International LLP

Anthony Parsons

Hugo Grimston

Tel: [phone]

Media

Tulchan Communications

David Allchurch

Martin Robinson

Tel: [phone]

Notes to Editors

CPPGroup Plc (CPP) is an International Assistance business operating in the UK and overseas with more than 200 Business Partners worldwide.  Via its Business Partners, CPP provides Life Assistance products to consumers, which includes annually renewed and packaged products that provide assistance and insurance across a wide range of market sectors designed to make everyday life easier to manage.

For more information on CPP visit www.cppgroupplc.com

IMPORTANT NOTICE

Greenhill & Co. International LLP, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for CPPGroup Plc and no one else in connection with the Disposal and will not be responsible to anyone other than CPPGroup Plc for providing the protections afforded to clients of Greenhill & Co. International LLP or for providing advice in relation to the Disposal or any other matter referred to in this document.

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "plans", "prepares", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Group, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Group's present and future business strategies and the environment in which the Group will operate in the future. These forward-looking statements speak only as at the date of this announcement. Except as required by the Financial Conduct Authority, the Listing Rules, the Prospectus Rules, the Disclosure Rules and Transparency Rules, the London Stock Exchange, applicable law or relevant regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

 

END

 

 

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