27 Mar 2014 08:18
27 March 2014
Formation Group PLC
("Formation" or the "Company")
Sale of Treasury Shares to Related Party
The Company announces that it has sold 16,497,258 treasury shares, representing approximately 7.48%, to Kennedy Private Trust Company, a related party. Following this transaction Kennedy Private Trust Company holds 25,320,787 ordinary shares representing approximately 11.48% of the issued share capital.
The shares were sold for 1.90 pence per share (being the closing mid-market price on 24 March 2014) resulting in a cash receipt by the Company of £313,447.90. This cash will be used for working capital purposes by the Company, pending receipt of the Redrow Home Limited monies referred to in the company's announcement of 21 March 2014.
Under the AIM Rules, the sale of the treasury shares constitutes a related party transaction given the buyer's relationship with the Chairman and CEO of the Company David Kennedy who, together with certain related parties, holds a majority shareholding in Formation. In accordance with the AIM Rules, the directors independent to the transaction are required to consider, having consulted with the Company's Nominated Adviser, that the terms of the transaction are fair and reasonable.
The independent directors consider, having consulted with Zeus Capital, that the terms of the transaction are fair and reasonable insofar as shareholders of Formation are concerned.
Contact details:
Formation Group PLC - David Kennedy; Chief Executive Officer - 020 7920 7590
NOMAD to Formation Group PLC;
Zeus Capital Limited - Ross Andrews / Andrew Jones - 0161 831 1512