16 Dec 2015 08:40
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TUNGSTEN CORPORATION PLC
("Tungsten", the "Company" or "Group")
TUNGSTEN AGREES SALE OF TUNGSTEN BANK
16 December 2015
Tungsten Corporation plc (LSE: TUNG), the global electronic invoicing, analytics and financing company, today announces it has reached an agreement for a sale of Tungsten Bank (the "Bank") following the conclusion of a previously announced strategic review, and subsequent to the exclusivity agreement announced with our Interim Results earlier this morning, for approximately £30m in cash.
The consideration represents net assets of £25.4m plus a premium. Completion is expected within six to 12 months.
The change in control agreement comes as Tungsten's Board concluded that operating a regulated deposit-taking banking license is incompatible with the pursuit of profitable growth from the foreseeable invoice financing opportunity. The development of its invoice financing offering remains a key component of Tungsten's strategy.
The transaction is subject to approval by the UK's Prudential Regulatory Authority and the Financial Conduct Authority ("FCA"). This process is expected to take between six to 12 months, although approval may be received sooner.
This announcement should be read in conjunction with the disclosure today of Tungsten's interim financial report for the six months ended 31 October 2015 for more details about Tungsten Corporation's invoice financing strategy.
Enquiries
Tungsten Corporation plc Richard Hurwitz, Chief Executive Officer Juliana Wheeler, Head of Global Communications (Media) |
+44 20 7280 7713 +44 20 7280 7973 |
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Panmure Gordon (Nominated Advisor) Fred Walsh/Dugald J. Carlean
| +44 20 7886 2500
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Canaccord Genuity Limited (Broker) Simon Bridges/Emma Gabriel/Cameron Duncan | +44 20 7523 8000
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Neustria Partners (Investors and Analysts) Robert Bailhache/Nick Henderson/Charles Gorman | +44 20 3021 2580
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About Tungsten Corporation plcTungsten Corporation (LSE: TUNG) aims to be the world's most trusted business transaction network by using data intelligently to strengthen the global supply chain.
Tungsten Network is a secure e-invoicing platform that brings businesses and their suppliers closer together with unique technology that revolutionises invoice processing, maximises efficiency and improves cashflow management. The network also provides users with real-time spend analysis through Tungsten Analytics, and offers access to Tungsten Early Payment, a form of alternative finance for businesses.
Tungsten serves 56% of the Fortune 500 and 67% of the FTSE 100. It enables suppliers to submit tax compliant e-invoices in 47 countries, and last year processed transactions worth over $187bn for organisations such as Alliance Data, Aviva, Cargill, Deutsche Lufthansa, General Motors, GlaxoSmithKline, Henkel, IBM, Kellogg's and the US Federal Government.