Worthington Grp Regulatory News (WRN)

6 Mar 2006 16:01

Worthington Group PLC06 March 2006 Worthington Group PLC (the "Company") Property update and Disposal 6th March 2006 Worthington are pleased to announce the sale of their Office block and adjoiningFactory at Fence Avenue, Macclesfield ("Fence Avenue"), for the sum of£2,750,000 to The Printworks Chester LLP. ("The Printworks"). Contracts havetoday been exchanged subject to shareholder approval for completion on 6 June2006. The Printworks will pay £412,000 into an escrow account, which will only bereleased to Worthington after an Extraordinary General Meeting which will bespecially called to obtain shareholders approval for this transaction. This isa Class 1 disposal which requires a full circular, which will be sent out toshareholders as soon as practicable together with details of the date and venueof the EGM. The Printworks will be undertaking certain alterations to the building duringthe time that shareholders approval is being sought, and so Worthington GroupPlc have indemnified them to the sum of £412,000, payable if shareholders do notapprove this transaction at the EGM. Fence Avenue has been on the market since Autumn 2004 when the trading businessof the subsidiary company occupying it was moved to smaller premises as part ofa downsizing exercise. Since then the property has undergone extensive marketingby our agents during which time a number of lower offers were received andrejected on our agent's advice. Our agents have now recommended to the Boardthat the offer received from the Printworks should be accepted. The sale willgenerate a loss on disposal of some £300,000 before selling costs. The funds received will go to redeem the mortgage on the property and eliminateall outstanding borrowings of the Group leaving it with a net cash position.The Board will be recommending to shareholders that they give their approval atthe EGM. In respect of the remaining properties the offer of £2.5m for the Keighleypremises has fallen through with the purchasers withdrawing their offer due, webelieve, to funding difficulties. The planning application for the Eccleshillsite continues to be considered by planners. If received we intend to finalisethe agreed offer of £1.2m subject to planning approval. J C Dwek CBEChairman 6 March 2006 Enquiries:Worthington Group plcJoe Dwek CBE, Chairman Tel: 01625 549082 This information is provided by RNS The company news service from the London Stock Exchange