Parkmead Regulatory News (PMG)

8 Nov 2007 15:57

Parkmead Group (The) PLC08 November 2007 Thursday 8 November 2007 THE PARKMEAD GROUP PLC ("Parkmead" or the "Group") Sale of Quayside Corporate Services Limited ("Quayside") The Board of Parkmead (the "Board") is pleased to announce the sale of Quaysideto David Mills for an initial cash consideration of £0.63 million plus adeferred cash payment of up to £1.97 million payable by 8 November 2008. DavidMills is a former Director of Parkmead and a significant shareholder inParkmead, accordingly he is considered a related party for this transaction. Quayside provides turnaround consulting services to businesses which havedeveloped trading difficulties. The effect of this sale on Parkmead will meanthat the Group is now wholly focused on the energy sector. Proceeds from thesale will form part of the resources for making principal investments in energybased assets. The net assets of Quayside which are being disposed of as a part of thistransaction as at 30 June 2007 were (negative) £0.15 million. During the yearended 30 June 2007 Quayside reported a loss of £0.19 million. As at 30 June2007, the goodwill generated on the original acquisition of Quayside was valuedin the audited accounts of the Group at £2.68 million. In the PreliminaryResults announced on 27 September this year the unpredictable nature of thedistressed company debt markets in which Quayside operates was noted. Havingregard to this and the future prospects of Quayside the Board has concluded thatthe sale of Quayside is in the best interests of the Group and that theconsideration received is satisfactory. In order to satisfy the initial cash consideration Mr Mills has today agreed tosell a total of 12,611,009 Ordinary Shares in Parkmead at a price of 5p. Of the12,611,009 shares sold by Mr Mills 2,000,000 have been purchased by Mr ColinGoodall, 1,000,000 shares by Mr John Leggate, 4,000,000 by Mr Tom Cross and200,000 by Mr Gordon Ashworth who are each a Director of the Group. AdditionallyMr Iain Rawlinson, a Director of one of the Group's subsidiaries, Radius EnergyLimited, purchased 4,000,000 shares. Accordingly Mr Mills, Mr Goodall, MrLeggate, Mr Cross, Mr Rawlinson and Mr Ashworth now have the followingbeneficial interest in the Group: Number of Ordinary Shares % of existing Share Capital David Mills* 63,146,567 17.14%Tom Cross** 4,000,000 1.09%Iain Rawlinson*** 4,000,000 1.09%Colin Goodall** 2,000,000 0.54%John Leggate** 1,000,000 0.27%Gordon Ashworth** 200,000 0.05% * former director of the Group ** current director of the Group *** director of a subsidiary of the Group Mr Mills intends to satisfy the payment of the deferred consideration throughthe sale of further shares in the Group. In accordance with the AIM rules the Directors of the Group are satisfied,having consulted with Charles Stanley Securities, its nominated adviser, thatthe terms of the transaction are fair and reasonable insofar as its shareholdersare concerned. Commenting, Chairman, Colin Goodall, said: "We are delighted to have reached this agreement with David and would like totake the opportunity of wishing him every success in re positioning Quayside.The Group will now focus on the energy sector and I look forward to growth overthe coming year" -Ends- For further information: The Parkmead Group plc 020 7494 5770Niall Doran CEOGordon Ashworth, CFO Madano Partnership 0207 593 4000Mathew Moth Charles Stanley Securities (Nominated Adviser) 0207 149 6482Rick ThompsonHenry Fitzgerald-O'Connor This information is provided by RNS The company news service from the London Stock Exchange