REG - Leeds Group PLC - Completion of Disposal

LeedsAnnouncement

27/03/2024 07:00

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RNS Number : 4222I  Leeds Group PLC  27 March 2024

27 March 2024

 

Leeds Group plc

("Leeds" or the "Company")

 

Completion of Disposal

The Board of Leeds Group plc ('Board') announces that, further to the
announcement on 25 March 2024, the Proposed Sale of Hemmers-Itex Textil Import
Export GmbH ('Hemmers') has been completed.

Going forward the Company will have no trading activities but through its
subsidiary LG Nordhorn Property GmbH, it will own three commercial properties
in Germany with an aggregate net book value of £5,209,000 as at 30 November
2023. The properties have been leased back to Hemmers, effectively from 1
December 2023 and, therefore, the Continuing Group will derive an average
rental income of approximately £440,000 per annum over five years, which will
cover the operating expenses of the Company for those five years.

AIM Rule 15 cash shell

The Disposal is deemed to be a disposal that divests the Company of all, or
substantially all of its trading businesses, activities or assets (pursuant to
Rule 15 of the AIM Rules). Accordingly, with effect from 26 March 2024, Leeds
is regarded, pursuant to the AIM Rules, as an AIM Rule 15 cash shell.

As an AIM Rule 15 cash shell, the Company must make an acquisition or
acquisitions which constitutes a reverse takeover under AIM Rule 14 (including
seeking re-admission under the AIM Rules) within six months from 26 March
2024. Alternatively, within such time period, the Company can seek to become
an investing company pursuant to AIM Rule 8, which requires, inter alia, the
raising of at least £6 million and the publication of an admission
document. If the Company does not complete a reverse takeover under AIM Rule
14 or seek re-admission to trading on AIM as an investing company pursuant to
AIM Rule 8 (either being a "Re-admission Transaction") within such six month
period, the Company's ordinary shares would be suspended from trading on AIM
pursuant to AIM Rule 40. Thereafter, if a Re-admission Transaction has not
been completed within a further six month period, admission to trading on AIM
of the Company's ordinary shares would be cancelled.

The Board continues to review the options available to Leeds. The Company will
provide further updates as appropriate.

Capitalised terms used in this Announcement shall, unless otherwise defined,
have the same meaning as set out in the announcement on 15 December 2023.

 

This announcement contains inside information for the purposes of UK Market
Abuse Regulation and has been arranged for release by Jan G Holmstrom,
Chairman.

 

Enquiries:

 

 Leeds Group plc                                Tel:  01937 547877

 Dawn Henderson
 Cairn Financial Advisers LLP                   Tel:  020 7213 0880

 Nominated Adviser

 Sandy Jamieson / Liam Murray / James Western

 

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