15 Jul 2010 13:32
Formation Group plc ("Formation" or the "Company")
Purchase of Proactive Sports Management Limited
The Company is pleased to announce that, on 15 July 2010, it purchased the entire issued share capital of Proactive Sports Management Limited ("Proactive") for a nominal consideration. Proactive has one employee.
By way of background, on 30 July 2009, the Company announced that it had entered into an agreement to sell certain of its subsidiaries to a company ultimately controlled by a private equity partnership. One of these subsidiary companies was Proactive, a sports representation business providing management services and career advice to professional sportsmen.
At that time, it was announced that the Company, through Proactive, had entered into legal proceedings against several parties who had not fulfilled contractual obligations. As part of the disposal of Proactive it was agreed that Formation would receive 75 per cent. of the aggregate net settlement of all sums which may become due in relation to such legal proceedings.
As a result of the acquisition, Formation holds the conduct of this litigation, and, through Proactive, the full costing responsibility for it, and will receive 86.5 per cent. of any financial awards made in respect of it.
Acquiring the total issued share capital and legal title to Proactive is a logical step for the Company.
Contact Details
Formation Group PLC
David Kennedy
Chief Executive Officer
Tel: 020 7920 7590
NOMAD to Formation Group PLC
Zeus Capital Limited
Ross Andrews Tel: 0161 831 1512