17 Jun 2015 16:40
Charles Stanley Group PLC
Update on Disposal of Charles Stanley Securities Division
Further to the announcement made on 6 May 2015 concerning a possible disposal of aspects of its Charles Stanley Securities Division ("CSS"), Charles Stanley Group PLC (the "Company") announces that it has exchanged contracts with Panmure Gordon (UK) Limited in respect of this disposal. Completion of the disposal is expected to take place in approximately four weeks.
CSS is the Company's equity capital markets business and is primarily focussed on providing advisory broking and research services to the small and mid -cap sector in the UK. The Company will retain its agency sales trading business. Those aspects of CSS the subject of the disposal are estimated to account for approximately £1m of the Company's profit before tax for the 12 months to 31 March 2014, and constitute approximately £1.5m of assets. The consideration payable in respect of the disposal will be in cash and will be comprised of an initial payment on completion of up to £1.5m and a deferred payment in the 12 months following completion of up to a maximum of £5m, with the deferred element being dependent on the performance of those aspects of CSS the subject of the disposal in that period . The consideration proceeds will be held for general corporate purposes.
This disposal is in line with the Company's strategy of focussing on its core private client wealth management activities
Julie Ung
Company Secretary
17 June 2015
For further information, please contact:
Mike Lilwall
Director
Phone: 020 7149 6244
Email: Mike.Lilwall@charles-stanley.co.uk
Rebecca Sanders-Hewett/ Richard GotlaRedleaf CommunicationsPhone: 020 7382 4730Email: CScapitalmarkets@redleafpr.com