7 Dec 2009 08:07
Formation Group Plc ("Formation" or the "Company")
Since completion of the sale of the Company's operations in the areas of talent management, sports representation, accountancy, taxation and sports corporate finance on 25 August 2009, the Board has carried out a strategic review of the Company's activities and has reached a commercial decision to focus on its property businesses going forward.
Consequently, the Board will no longer remain in the Wealth Management sector and has entered into discussions to sell the assets of Formation Asset Management Ltd and Formation Wealth Solutions Ltd, its wholly owned wealth management subsidiaries, to certain of its existing management. The final terms of the consideration to be received has yet to be agreed but is expected to be based on a percentage of income generated from an agreed client list over a three to five year period following completion of the disposals.
The disposals are expected to be related party transactions under the AIM Rules for Companies ("AIM Rules"). In accordance with the AIM Rules the directors independent to the transaction will consider, having consulted with its Nominated Adviser; Zeus Capital, as to whether the transaction is fair and reasonable and in the best interests of shareholders.
A further announcement will be made once terms of the disposals have been agreed.
Enquiries:
Formation Group plc Tel: 020 7920 7590
John Lawrence MBE
Mike Wallwork
Zeus Capital Tel: 0161 831 1512
Ross Andrews
Tom Rowley