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12 May 2017 07:00
DRIVER GROUP PLC
("Driver" or "the Group")
Disposal of South African Subsidiary
Driver Group plc ("Driver"), the provider of specialist commercial and dispute resolution services to the construction and engineering industries, is pleased to announce that it has concluded an agreement to sell its subsidiary, Driver Trett South Africa Pty Ltd ("DTSA"), to DTSA's local management team.
Driver has wholly-owned the business since October 2013. With the clarification of the group strategy to focus on claims and dispute resolution and expert witness work, DTSA, with its more widespread focus and which has recently been loss-making, was regarded as non-core with little immediate prospect of improved performance under its current ownership structure.
In consideration for the disposal, Driver will become entitled to receive the net proceeds of sale of the 300,000 Driver ordinary shares currently owned by DTSA management. Driver has agreed to write-off an inter-company balance due from DTSA totalling £0.63m. Cash proceeds received from the sale will be utilised for working capital purposes.
In FY16 DTSA had revenue of £3.59m and a loss before tax of £0.55m with net liabilities of £0.18m as at 31 March 2017.
The disposal of DTSA to the local management team, being Gerhard Bester and Christo de Witt, is classified as a related party transaction. The Directors consider, having consulted with the Company's Nominated Adviser, N+1 Singer, that the terms of the transaction are fair and reasonable in so far as Driver's shareholders are concerned.
Driver expects to announce its interim results on 23rd May 2017.
Enquiries:
Driver Group plc
Gordon Wilkinson (CEO)
Hugh Cawley (CFO)
+44 (0) 1706 223 999
N+1 Singer (Nominated Adviser & Broker)
Sandy Fraser
James White
Alex Laughton-Scott
+44 (0)20 7496 3000
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