LONDON (Alliance News) - Tarsus Group PLC, a business-to-business media company, Monday said it has agreed to sell its French business to Magellan VI SAS for up to EUR9.2 million, going further than a previous deal that would have involved a partial exit from France.
The agreement is expected to be "modestly dilutive" to earnings per share in both the current financial year and in future years, with the proceeds generated from the sale of the French business to strengthen Tarsus Group's balance sheet and fund expansion.
The deal supersedes an earlier agreement disclosed to the market in January, under which Tarsus had undertaken to sell up to 18% of the French business to CRG Consulting SAS.
CRG will own 50.03% of Magellan VI SAS, the buyer, with Fonds de Consolidation et de Développement des Entreprises II holding the remaining 49.97%. Romuald Gadrat, the managing director of the French business, owns 80% of CRG.
"Since 2010 we have reshaped the group's portfolio to target a greater exposure to the US and emerging markets," Managing Director Douglas Emslie said in a statement.
"The disposal of our French business will allow us to recycle capital and continue to invest in these higher growth economies," Emslie said.
Tarsus shares were up 2.5% at 207.00 pence on Monday morning in London.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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