Management Consulting Group PLC Update on the Kurt Salmon escrow funds (7038W)
August 03 2018 - 1:00AM
UK Regulatory
TIDMMMC
RNS Number : 7038W
Management Consulting Group PLC
03 August 2018
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014 (the "Market Abuse
Regulation").
3 August 2018
Management Consulting Group PLC
Update on the Kurt Salmon escrow funds
In summary, a further total of approximately GBP242,000 has been
released from escrow to the Group and the Company and Wavestone
have agreed to extend the escrow period for the remaining GBP1.65m
under discussion until 7 October as negotiations continue.
As announced on 10 July 2018, the Group and Wavestone agreed to
extend the period of escrow for approximately EUR1.8 million
(approximately GBP1.6 million) of the second tranche of EUR4
million held under escrow which guarantee certain contingent
liabilities relating to the disposal of parts of the Kurt Salmon
business to Wavestone in 2016 (the "KS Escrow Funds") by a further
month to 7 August 2018. This was in order to allow negotiations
over the treatment of the potential indemnification claims raised
in Wavestone's further letter of claim of 26 June 2018 to be
finalised.
The Group continues to assess the merits of these further claims
and to discuss the appropriate treatment with Wavestone. As these
discussions are still continuing, the Company and Wavestone have
agreed to extend the period of escrow for an amount equal to the
approximate EUR1.65 million (approximately GBP1.5 million) claimed
by Wavestone by a further 2 months to 7 October 2018 so as to allow
the negotiations to continue. As a result, a further approximate
EUR145,000 (approximately GBP130,000) will be released to the Group
from the escrow arrangements reflecting the agreement between
Wavestone and the Group that one of the further potential
indemnification claims raised by Wavestone is no longer an
issue.
In addition, on 27 July 2018, approximately EUR124,000
(approximately GBP112,000) was released to the Group from the EUR2
million (approximately GBP1.8 million) of escrow established on 27
April 2018 in relation to the first tranche of the KS Escrow Funds
reflecting the settlement of one of the potential claims covered by
this escrow without any liability to the Group.
The Board remains confident as to the Group's overall position
in terms of the claims raised to date by Wavestone, and so expects
to secure the release of the remaining outstanding KS Escrow Funds
progressively. As previously announced, the Board believes a degree
of uncertainty still exists as to the timing of the remaining KS
Escrow Funds being released to the Group in the second half of
2018.
The Board will provide further updates on these matters as
appropriate.
Management Consulting Group PLC
Tel: +44 20 7710 5000
Nick Stagg, Chairman and Chief Executive
Market Abuse Regulation
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulation. Upon the publication of this announcement
via a regulatory information service, this inside information is
now considered to be in the public domain.
The person responsible for arranging for the release of this
announcement on behalf of the Group is Nick Stagg, Chairman and
Chief Executive.
Forward-looking statements
Certain information contained in this announcement constitutes
forward looking information. This information relates to future
events or occurrences or the Company's future performance. All
information other than information of historical fact is forward
looking information. The use of any of the words "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"should", "believe", "predict" and "potential" and similar
expressions are intended to identify forward looking information.
This information involves known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward looking
information. No assurance can be given that this information will
prove to be correct and such forward looking information included
in this announcement should not be relied upon. Forward-looking
information speaks only as of the date of this announcement.
The forward looking information included in this announcement is
expressly qualified by this cautionary statement and is made as of
the date of this announcement. The Group does not undertake any
obligation to publicly update or revise any forward looking
information except as required by applicable securities laws.
END
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END
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