Disposal
11 8월 2003 - 7:31PM
UK Regulatory
RNS Number:5250O
Durlacher Corporation PLC
11 August 2003
Embargoed until 10.30 a.m.
11 August 2003
Durlacher Corporation Plc
Sale of Private Client Stockbroking business for up to #3.5 million
Durlacher Corporation Plc ("Durlacher" or "Company") is pleased to announce that
it has today entered into an agreement ("Agreement") to sell part of the
business and assets of its Private Client Stockbroking business to Charles
Stanley Group plc ("Charles Stanley") for a maximum consideration of #3.5
million in cash. This disposal falls to be classified as a class 2 disposal
under the Listing Rules of the UK Listing Authority.
The Private Client Stockbroking business being sold provides execution-only,
advisory and discretionary stockbroking services to its customers principally in
UK equities, bonds, options and contracts for differences.
In the twelve months ended 30 June 2002, the unaudited management accounts of
Durlacher showed that its Private Client Stockbroking business the subject of
this disposal generated gross revenues of approximately #703,000 and a gross
profit of approximately #352,000. At the same date, the net assets the subject
of the disposal were valued at #nil. Revenues as per the unaudited management
accounts for the twelve months ended 30 June 2003 were #1.1 million.
Completion of the Agreement ("Completion") is expected to take place on 26
September 2003 and is conditional upon: (1) no objection being lodged to the
proposed disposal by the Financial Services Authority; and (2) the entering into
by the brokers transferring from Durlacher's Private Client Stockbroking
business of compromise agreements with Durlacher and contracts for services or
employment contracts with Charles Stanley.
The total of up to #3,500,000 cash consideration will be satisfied as to: (1)
#250,000 on completion; and (2) further amounts following Completion with
reference to one times the average annual gross revenues generated over the 2
years following Completion by the business and assets disposed of under the
Agreement, less the amount set out in (1) above. The total amount receivable by
Durlacher is capped at a maximum of #3,500,000. Durlacher will retain any
liabilities arising from the operation of its Private Client Stockbroking
business up to the date of Completion.
The proceeds of the disposal strengthen the balance sheet and will be applied to
developing Durlacher's investment banking and fund management businesses going
forward. In addition, the disposal reduces the cost base of Durlacher.
Tony Caplin, Chairman of Durlacher, commented: "We are very pleased to have
taken another step in Durlacher's re-structuring and re-focussing as an
investment bank with the successful sale of part of the Private Client
Stockbroking business to Charles Stanley. We believe that Charles Stanley has a
strong brand and position in private client stockbroking and believe that
Durlacher's Private Client Stockbroking business will flourish under its
ownership."
Enquiries:
Christopher Stainforth, Chief Executive
Durlacher Corporation Plc
020 7459 3600
Sophie Dawn, Marketing & communications
Durlacher Corporation Plc
020 7459 3600
David Rydell / Billy Clegg
Bell Pottinger Financial
020 7861 3232
This information is provided by RNS
The company news service from the London Stock Exchange
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