CLS Holdings PLC Disposal (5625N)
January 21 2019 - 1:00AM
UK Regulatory
TIDMCLI
RNS Number : 5625N
CLS Holdings PLC
21 January 2019
PRESS RELEASE
Release date: 21 January 2019
Embargoed until: Immediate release
CLS Holdings plc
("CLS", the "Group", the "Company")
Disposal of its interest in First Camp and update of year end
net asset value
CLS is pleased to announce that it has exchanged contracts to
sell the Group's 58.02% interest in First Camp Sverige Holding AB
("First Camp") to Nordic Camping & Resort Bidco AB ("Nordic
Camping"), indirectly majority owned by a fund advised by Norvestor
Equity AS, for GBP28.7 million, to be satisfied by GBP21.0 million
in cash and a GBP7.7 million vendor loan (the "Transaction").
The Transaction is in line with CLS's strategy to focus on its
core business of office properties in the UK, Germany and France
and the proceeds will be re-invested in higher yielding commercial
property opportunities. The Transaction is subject to receiving
clearance from the Swedish Competition Authority, which is expected
before the date of completion on 1 February 2019.
The disposal of First Camp, together with the Cood Transaction
detailed below, is expected to result in a reduction in CLS's net
assets of GBP9.9 million, equating to a marginal fall in EPRA NAV
of circa 2 pence per share, the majority of which will be accounted
for at 31 December 2018. Nevertheless, the Group expects to deliver
EPRA NAV at 31 December 2018 at the higher end of market
expectations. The Group's 2018 full year results will be announced
on 7 March 2019.
Fredrik Widlund, Chief Executive Officer of CLS, commented:
"I am delighted that we have been able to turn around First Camp
into a profitable business prior to sale. First Camp is an owner
and operator of vacation sites in Sweden, and its disposal is in
line with the Group's strategy of focusing on our core business of
long-term ownership of office properties in the UK, Germany and
France."
Further Disclosure and Smaller Related Party Transactions
The vendor loans will be made by the existing shareholders of
First Camp in proportion to their existing holdings, at an interest
rate of 4% payable quarterly, plus an additional 2% which will be
rolled up into the loan (the "Vendor Loan Transaction").
In a separate transaction, First Camp has sold its shareholding
in Cood Investments AB ("Cood") for a nominal amount to the
existing shareholders of First Camp in proportion to their existing
holdings. Cood had net assets of GBP0.6 million at 31 December 2018
(the "Cood Transaction").
The Vendor Loan Transaction and the Cood Transaction are both
related party transactions pursuant to LR11.1.10R because the two
other shareholders of First Camp are related parties of CLS, namely
i) the Sten and Karin Mortstedt Family and Charity Trust (which has
a 51.39% interest in CLS and a 29.10% interest in First Camp) and
ii) CSL Fastighets AB, a company associated with Christer Sandberg
who has been a non-executive director of certain CLS subsidiaries
until September 2018 (which has a 12.88% interest in First
Camp).
Liberum Capital, the Company's sponsor, has provided written
confirmation to the Company that the terms of the Vendor Loan
Transaction and the Cood Transaction are fair and reasonable so far
as the shareholders of the Company are concerned.
-ends-
For further information, please contact:
CLS Holdings plc
(LEI: 213800A357TKB2TD9U78)
www.clsholdings.com
Fredrik Widlund, Chief Executive Officer
John Whiteley, Chief Financial Officer
+44 (0)20 7582 7766
Liberum Capital Limited
Richard Crawley
Jamie Richards
+44 (0)20 3100 2222
Whitman Howard
Hugh Rich
+44 (0)20 7659 1261
Elm Square Advisers Limited
Jonathan Gray
+44 (0)20 7823 3695
Smithfield Consultants (Financial PR)
Alex Simmons
Rob Yates
+44 (0)20 3047 2476
This information is provided by RNS, the news service of the
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END
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