Numis Corporation PLC
12 May 2005
EMBARGOED FOR RELEASE UNTIL 7:00AM THURSDAY 12TH MAY
NUMIS - POTENTIAL DISPOSAL OF ITS INTEREST IN COMDIRECT LTD
Numis Corporation plc ('Numis') announces that it has entered into a contingent
agreement to sell its 26.3% interest in comdirect Ltd. Together with other
shareholders in Execution Services Group Limited ('ESGL'), the holding company
of comdirect Ltd., Numis has entered into an arrangement of put and call options
in respect of their interest in ESGL with Boursorama SA, France's largest online
retail broker.
The put and call options can be exercised over the period 1 August 2005 to 30
September 2005 and, if exercised, would give Boursorama SA control over ESGL.
The ESGL shareholders have granted Boursorama SA a call option which if
exercised would result in the sale of ESGL in August this year. If Boursorama SA
have not exercised their call option by 1 September 2005, the ESGL institutional
shareholders, including Numis, each have an option to sell the entire issued
share capital of ESGL to Boursorama SA. This put option is exercisable until 30
September 2005. The exercise of the option by either party will be contingent
on, inter alia, the FSA approving the acquisition of ESGL by Boursorama SA.
In the event of either option being exercised, Numis would receive approximately
£14.0 million in cash, thereby realising an estimated pretax profit of £8.5
million less the share of profits equity-accounted for by Numis arising in the
period until the exercise of the option. The current book value of Numis holding
in ESGL is £4.5 million. Any proceeds from the disposal would be used in the
development of Numis' core business.
ESGL has no assets other than its holdings in comdirect Ltd, which is an online
retail brokerage. Numis has a 26.3% interest in the ordinary share capital of
ESGL. Numis' share of pretax profits of ESGL for the six months to 31 March 2005
was £228,000.
Numis and comdirect Ltd both expect to continue their mutually profitable
trading relationship, with Numis continuing to provide its Retail Service
Provider (RSP) facilities to comdirect Ltd.
Notes to Editors:
comdirect is the UK's second largest on-line stockbroker and the UK's third
largest retail stockbroker by share trading volumes and the market leader in
covered warrants.
Currently 22 retail brokers trade with Numis, taking advantage of its expanding
RSP offering.
Contacts:
Numis Corporation
Oliver Hemsley, Chief Executive 020 7776 1500
Brunswick
Gill Ackers 020 7396 5382
Rachel Quigley 020 7396 3507
This information is provided by RNS
The company news service from the London Stock Exchange
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.