Andalas Energy & Power Regulatory News (ADL)

31 Jul 2006 07:02

AdVal Group PLC31 July 2006 AdVal Group plc ("AdVal" or the "Group") Further to the announcement made on 22 June 2006, which referred to currenttrading being significantly behind the Board's expectations, trading continuesto be very difficult. Following a review of the businesses within the Group andtheir performance since the acquisition of Maxim Learning Ltd ("Maxim"), theBoard has concluded that the cost to the Group of being listed on AIM in itspresent form is unsustainable, although the Directors believe that AdVal'sindividual trading subsidiaries are capable of trading profitably. Accordingly,the Board has concluded that, in order to protect the interests of shareholdersand seek to optimise the return to them, it should seek to sell its businessespiecemeal, which has involved seeking for each business a buyer with aparticular interest in that activity. It has now reached agreements in principle to sell the majority of itsbusinesses and legal documentation is being prepared. Further information willbe given to shareholders as soon as practicable. The proposed individual transactions are as follows: • the generic product business previously carried out by Maxim, together with the on-line and CD rom products of AdVal Key Knowledge Ltd. ("AKK") is proposed to be sold to an unrelated third party; • the combined bespoke e-learning businesses carried out by AdVal Learning Solutions ("ALS") and Maxim, is proposed to be sold to a related party, Root Capital LLP, acting as general partner for Root Capital Fund LP, ("Root"). The terms of the proposed disposal are such that any significant return to the Group is dependent upon an earn-out. Root owns 45% of the issued share capital of AdVal and Messrs E Mallinckrodt and S Phillips, both of whom are directors of AdVal, are partners in Root; and • Adval is in negotiations to sell Livementor Ltd, its subsidiary which provides on-line mentoring services, to an unrelated third party. This will leave the accredited generic product business carried out by AKK asAdVal's only trading activity. AdVal also announces that Mr Tim Critchley, who was appointed a Director at thetime of the acquisition of Maxim, has left the Group to join Knowledgepool GroupLtd, a company wholly owned by Root. This information is provided by RNS The company news service from the London Stock Exchange