LONDON (Alliance News) - Boxhill Technologies PLC said Friday that it has agreed terms in relation to joint venture for its Soccerdome football pitch business.
The company said it is working with Nottingham City Council to open 5 and 7-a-side pitches at the Harvey Hadden Sports Village in Billborough, Nottingham.
Boxhill has agreed to form a new joint venture, called Nineteen Twelve Holdings Ltd, to operate and finance the expansion of the site. The joint venture will have two shareholders, James Christopher Gordon Rose and Boxhill's wholly owned subsidiary Soccerdome Ltd.
Soccerdome Ltd will surrender its existing lease to the council, and the council will issue a new 45 year lease to the joint venture company covering the same site.
Soccerdome Ltd will be issued with 10 A class ordinary shares, which will have the right to receive 100% of the after tax profits of the joint venture company by way of a dividend either in 10 years, or when these dividends have totalled GBP250,000, whichever is shorter. At the end of this time the A shares will have the same rights as B class ordinary shares of the joint venture company.
Rose's remuneration from the joint venture will be 30% of the pretax profit.
"We are delighted with the Joint venture signed today. It allows Boxhill to retain the value in its investment without a full time management commitment, and releases, to its joint venture partner, the immediate obligation to fund the necessary renovation of the facility while allowing Boxhill to focus on its other business divisions," said Chairman Edward Razzall in a statement.
Shares in Boxhill Technologies were up 1.1% at 0.359 pence Friday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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