ALLG13 Nov 2015 11:52
Summary of the Proposed Transaction
· Proposed sale of the Assets for *cash consideration of £2.9 million* (plus VAT if applicable).
· HP Shipping will lease the Assets back to ALH for a fixed fee of £500,000 per annum (plus VAT if applicable) under a lease term expiring on 31 December 2023.
· ALH will also agree to share ALH data relating to current, prospective and former customers of ALH or the Vessel with HP Shipping during the period of the lease for cash consideration of £100,000 (plus VAT if applicable).
· The Hebridean Island Cruises division contributed approximately £2.1 million to Group net profit for the year ended 31 October 2014.
· The Assets had a net book value of approximately £1.9 million as at 30 April 2015.
· ALH will have a call option to repurchase the Assets for two years from the date of completion of the Proposed Transaction under terms disclosed later in this announcement.
· The Group would benefit from an immediate cash injection of £3 million (before expenses) and will retain the operational division and the associated cashflows of the profitable Hebridean Island Cruises business.
· The proceeds of the Proposed Transaction will strengthen the Group's balance sheet and improve liquidity.
· The expected date of completion for the Proposed Transaction is 30 November 2015.