22 September 2006
22 September, 2006
Rightmove plc disposes of 25% stake in TMG Holdings Ltd
In January 2006, in expectation of developing a Home Information Pack ('HIPs')
business, Rightmove invested £3.25m to acquire a 25% stake in TMG Holdings Ltd
('TM'). TM is a provider of searches from local authorities and other bodies,
which are expected to be a legal requirement of HIPs under legislation proposed
by the government. As at 31 December 2005, TM had £4.36 million of gross assets
and generated £31,329 profit before tax. The Chief Executive Officer of TM is
Mr. John Carolan, and the Chief Operating Officer is Mr. Trevor Brown.
On 26th July 2006, Rightmove announced its intention to discontinue investment
in HIPs in response to government changes to the proposed legislation. The TM
shareholder agreement explicitly made provision for circumstances in which
Rightmove might be unable to order substantial volumes of searches from TM, such
as a revision of the government's plans for HIPs. As a result, the other TM
shareholders have a right to buy back Rightmove's stake in TM.
On 22 September 2006, Rightmove disposed of its 25% stake in TM to the other TM
shareholders (Balanus Limited, Connells Limited and Halifax Estate Agencies
Limited) for an aggregate cash consideration of £3.25m, before costs.
The proceeds of the transaction will be used by Rightmove to develop the core
operations of the company.
Information please contact:
Rightmove 020 7318 9095
Graham Zacharias, Finance Director
Maitland 020 7379 5151
This information is provided by RNS
The company news service from the London Stock Exchange