completion of initial stage

8 Aug 2005 07:00

Northgate PLC08 August 2005 Embargoed for release until 7am on 8 August 2005 Northgate PLC Completion of the acquisition of the initial 49 per cent of the issued share capital of Record Rent a Car S.A. Northgate PLC ("Northgate" or the "Company"), the UK's leading specialist inlight commercial vehicle hire, announces that it has completed the acquisitionof the initial 49 per cent of the issued share capital of Record Rent a Car S.A.("Record Rent"). On 5 July 2005 Northgate announced the acquisition would be completed in twostages, for a maximum total consideration of €140m (£95m) subject to RecordRent's profit after tax in the current financial year. Following the receipt of approval from the Spanish competition authorities and the completion of thedemerger of Record Go, a subsidiary involved solely in the provision of cars tothe holiday market, Northgate has today completed the acquisition of 49 per cent of the issued share capital of Record Rent for a cash consideration of€54.8m (£37.2m). Northgate will acquire the remaining 51 per cent of the issued share capital ofRecord Rent for a cash consideration not exceeding €85.2m (£57.8m), comprisinga fixed payment of €61.2m (£41.5m) and an additional amount equal to the profitafter tax of Record Rent for the year ending 31 December 2005 up to a maximum of€24m (£16.3m). This stage of the acquisition will complete following theapproval of Record Rent's accounts for the year ending 31 December 2005, expected to take place in May 2006. Northgate and the vendors have entered into a shareholders' agreement providingfor the operation of Record Rent in the period up to completion of the secondstage of the acquisition. As part of the agreement Northgate has appointed threeof its representatives to serve as Directors of Record Rent. - Ends - For further information, please contact: Northgate plc 01325 467558Steve Smith, Chief ExecutiveGerard Murray, Finance Director Hogarth Partnership Limited 020 7357 9477Barnaby FryEdward Westropp This information is provided by RNS The company news service from the London Stock Exchange