Partial Disposal of Australia

RNS Number : 0808C

W.H. Ireland Group PLC

06 November 2009

 



AIM:WHI

WH Ireland Group PLC

Reduction in shareholding of Australian subsidiary, MBO by local management and staff

WH Ireland Group PLC ("the Group") announces that it has significantly reduced its stake in its subsidiary, WH Ireland Australia Pty Ltd ("WHI Australia"), the holding company of Perth based stockbroking company, DJ Carmichael Pty Limited.  

The Group has agreed the sale of a 39.35% holding, totaling 48,500 shares, for a consideration of A$1,274,095. The sale is being made to a group of investors substantially comprising the existing directors and employees of DJ Carmichael.  Rupert Lowe, Chairman of the Group and also a director of WHI Australia, is purchasing 7,000 shares for a cash consideration of A$183,890. Four other directors of WHI Australia are purchasing a total of 10,000 shares for a total cash consideration of A$262,700.  As a result, the Group now owns a 37.28% shareholding, representing 45,945 shares, in WHI Australia.  

The consideration is being satisfied in cash and will increase the working capital of the Group.  The Group is also entitled to dividends from future profits by way of a single redeemable preference share as recognition of a deferred tax asset.  The total value of the Group's share of the deferred tax asset will be A$425,825 in respect of the shares sold. This means that should this asset be recognised, the total income received by the Group for its sale of 48,500 shares will be $1,672,920.

For the six months ending 31st May 2009, WHI Australia reported a consolidated net loss after tax of A$542,631. The consideration received on the disposal of the 48,500 shares is marginally below the carried value of those shares as at 31 May 2009. 

The Group will continue to work closely with DJ Carmichael and following completion of the transaction, the Group will retain four directors on the board of WHI Australia.  

Richard Ford, Chief Executive of W H Ireland Group PLC, said:

"This deal represents an excellent development for all parties. It incentivises the local management and employees of DJ Carmichael to maximise its future growth with the benefit of the team's in-depth local knowledge and experience.

We have built up excellent working relations with DJ Carmichael over the years of our involvement. As well as retaining a substantial stake in the business, we will continue to work closely together - especially on cross-border corporate transactions where our combined strengths represent a real advantage for corporate clients."

Ian Dorrington, Managing Director of DJ Carmichael, said:

"We look forward to continuing to work closely with WH Ireland. With a great number of employees and colleagues now as shareholders, our interests are much more closely aligned with WH Ireland and we are confident of a long and successful relationship." 

 Enquiries:

WH Ireland                                                                Tel: [phone]

Richard Ford

Oriel Securities Ltd                                                    Tel: [phone]

Tom Durie

Biddicks (Financial PR to WH Ireland)                         Tel: [phone]

Zoe Biddick

 

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