Brief: IWG Plc Enters Into Strategic Partnership With TKP Corp In Japan

TKP

15/04/2019 07:24

April 15 (Reuters) - IWG Plc  IWG.L :
    * STRATEGIC PARTNERSHIP TRANSACTION IN JAPAN
    * ENTERED INTO A STRATEGIC PARTNERSHIP WITH TKP CORPORATION
IN
JAPAN
    * IWG WILL DIVEST ITS JAPANESE OPERATIONS TO TKP
    * PARTIES HAVE AGREED AN EXCLUSIVE MASTER FRANCHISE
AGREEMENT FOR
COUNTRY
    * IWG WILL RECEIVE GROSS CONSIDERATION OF £320 MILLION
PAYABLE IN
CASH
    * IWG AND TKP HAVE ENTERED INTO A DEFINITIVE SALE AND
PURCHASE
AGREEMENT IN RELATION TO 100% OF SHARES OF REGUS JAPAN HOLDINGS
K.K.
    * DEAL COMPLETION IS EXPECTED TO OCCUR IN MAY 2019
    * IWG AND TKP HAVE ALSO ENTERED INTO A LONG TERM MASTER
FRANCHISE
AGREEMENT
    * UNDER MASTER FRANCHISE AGREEMENT, IWG (AS MASTER
FRANCHISOR) HAS
COMMITTED TO PROVIDE ON-GOING SERVICES AND SUPPORT TO TKP
    * DIVESTED BUSINESS CONTRIBUTED £94.4 MILLION TO GROUP
REVENUE AND
GENERATED EBITDA OF £20.6 MILLION IN 2018
    * TOTAL GROSS ASSET VALUE OF DIVESTED BUSINESS AS AT 31
DECEMBER
2018 WAS £98.3 MILLION.
    * IWG PLC - PROCEEDS FROM DIVESTMENT WILL BE USED FOR
GROUP'S
GENERAL CORPORATE PURPOSES
    * IWG PLC - MARK DIXON WILL JOIN BOARD OF DIRECTORS OF TKP
AS A
NON-EXECUTIVE DIRECTOR
    * TRANSACTION CONSTITUTES A CLASS 2 TRANSACTION FOR PURPOSES
OF UK
FINANCIAL CONDUCT AUTHORITY'S LISTING RULES

Source text for Eikon:  ID:nRSO1253Wa 
Further company coverage:  IWG.L 

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