nice22 Sep 2016 09:37
22/09/2016 7:01am
UK Regulatory (RNS & others)
Management Consulting (LSE:MMC)
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Today : Thursday 22 September 2016
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RNS Number : 5314K
Management Consulting Group PLC
22 September 2016
22 September 2016
This announcement contains inside information
Management Consulting Group PLC
Disposal of the remaining Kurt Salmon business
Management Consulting Group PLC ("MCG" or the "Company") today announces that it has entered into an agreement with Accenture for the sale of Kurt Salmon (the "Target Business"), comprising the Kurt Salmon retail and consumer goods consulting businesses in the United States, Canada, the United Kingdom, Germany, China, Hong Kong and Japan, for a total gross cash consideration of approximately $165 million (equivalent to approximately GBP127 million) payable on completion of the sale (the "Disposal").
Highlights
-- The Disposal is expected to realise gross cash proceeds of approximately GBP127 million, allowing MCG to seek to use part of the net proceeds of the Disposal to fund a proposed payment of capital to shareholders (the "Return of Capital")
-- The Disposal represents an attractive value for shareholders with the proposed gross consideration representing approximately 148% of the MCG Group's (the "Group") current market capitalisation
-- The net proceeds of the Disposal will strengthen the financial position of the Group by increasing the level of cash resources available to the remaining business and eliminating the requirement for the existing working capital facility
The Disposal, because of its size relative to the Group, is a Class 1 transaction for MCG under the Listing Rules and is therefore conditional, inter alia, on the approval of MCG shareholders. MCG shareholders representing approximately 52% of the Company's issued Ordinary Share Capital, excluding shares held in treasury, have given irrevocable undertakings to vote in favour of the resolution to be proposed at the general meeting to approve the Disposal.
A circular containing further information on the Disposal and the Return of Capital along with a notice convening a general meeting will be sent to MCG shareholders in due course.
Alan Barber, Chairman of MCG, commented:
"The proposed disposal of the Kurt Salmon retail and consumer goods consulting business follows the recent disposals of the healthcare and French and related operations of Kurt Salmon. We believe the business will be in excellent hands as part of Accenture. In aggregate these disposals are expected to realise total net proceeds (after transaction expenses) for the Kurt Salmon businesses of approximately GBP180 million. We expect to return part of the proceeds from the Disposal to shareholders in due course and are highly focused on driving a recovery to profitable growth in the Alexander
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