REG - Empresaria Group PLC - Sale of subsidiary and related party transaction

EmpresariaAnnouncement

08/11/2024 07:00

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RNS Number : 4403L  Empresaria Group PLC  08 November 2024

8 November 2024

 

 

Empresaria Group plc

("Empresaria" or the "Group")

 

Sale of non-core subsidiary and related party transaction

Empresaria, the global specialist staffing group, announces the sale of its
51% interest in Japanese subsidiary, Fines Tokyo K.K. ("Fines") to Fines
Holdings K.K. ("Acquiror"). In consideration, Fines K.K., a holding company
which owned 100% of Fines, repaid JPY50 million (c.£253,000) of a JPY90
million (c.£455,000) intercompany balance due to the Company in cash
("Consideration"). The Company then transferred its 51% interest in Fines back
to Fines for nil consideration (the above transactions together being the
"Sale"). The Company regards the transactions relating to the Sale to have
completed on 18 October 2024.

Fines recruits in the fashion retail market in Japan. Further to our earlier
announcements, this Sale is the fourth exit of smaller operations in markets
or sub-sectors where we do not plan to invest as per our plans communicated
earlier in the year. The Consideration will be held on the Group's balance
sheet.

In 2023, Fines contributed £1.9m to the Group's revenue, £0.6m to net fee
income, £0.0m to adjusted profit before tax and had net assets of £0.3m as
at 31 December 2023.

Related party transaction

Yoshikazu Tanabe and Tomonari Harada are directors in Fines and have interests
in the Acquiror. The Sale is considered to be a related-party transaction for
the purposes of AIM Rule 13. The directors of Empresaria, all of whom are
independent of Mr Tanabe, Mr Harada and the Acquiror, consider, having
consulted Singer Capital Markets Advisory LLP, the Company's nominated
adviser, that the terms of the Sale are fair and reasonable insofar as
Empresaria's shareholders are concerned.

- Ends -

 

Enquiries:

 Empresaria Group plc                                         via Alma PR
 Rhona Driggs, Chief Executive Officer

Tim Anderson, Chief Financial Officer
 Singer Capital Markets (Nominated Adviser and Joint Broker)  020 7496 3000
 Shaun Dobson / Alex Bond

 Cavendish Capital Markets Limited (Joint Broker)             020 7220 0500
 Katy Birkin (Corporate Finance)

Michael Johnson / Jasper Berry (Sales)
 Alma Strategic Communications (Financial PR)                 020 3405 0205
 Sam Modlin / Rebecca Sanders-Hewett / Will Merison
empresaria@almastrategic.com

 

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