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TG21 Plc (TGP)

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Monday 20 October, 2008

TG21 Plc

Potential Disposal

RNS Number : 1729G
TG21 Plc
20 October 2008
 



20 October 2008


TG21 plc 

('the Company' or 'the Group')


Potential Disposal


Option for sale and partial lease back


TG21, the vehicle installation service provider supplying public transport CCTV and other monitoring systems, today announces that it has signed an agreement with Drake Investments Limited ('Drake') under which Drake has the option to purchase the Group's freehold premises in Mitcham, Surrey for £2.7m cash consideration.


Following exercise of the option, the site will be redeveloped and the Group will enter into a lease for a new facility on part of the redeveloped property.  The option is subject to Drake obtaining satisfactory planning permission to redevelop the site.  The option will lapse after 18 months if the sale has not completed and there are no planning appeals outstanding at that time.  It is intended that the net cash generated from the disposal will be applied to repay any remaining bank borrowing secured against the premises with the remainder invested into the Group's public transport solutions business.


Commenting on today's announcement, Peter Ward, Chairman said: 'Since the disposal of much of our distribution division last year we have not fully utilised the office and warehouse space at our Mitcham head office. Consequently the agreement signed today provides us, following completion of the deal, with the opportunity to move our operations to purpose built premises and would release significant capital for re-investment into our fast growing public transport solutions business.'   



Ends


For enquiries please contact:


Peter Ward, Chairman

Nick Grimond, Chief Executive

Wilson Jennings, Finance Director

TG21 plc                                             Tel: 020 8710 4016


Graham Webster

Daniel Stewart & Company plc               Tel: 020 7776 6576


Barnaby Fry/Vicky Watkins 

Hogarth Partnership                             Tel: 020 7357 9477


This information is provided by RNS
The company news service from the London Stock Exchange
 
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