PGI Pgi Grp

RNS Number:6455T
PGI Group PLC
04 November 2005


                                 PGI Group Plc


PGI Group Plc ("PGI") announces that the Group has entered into a conditional
agreement to dispose of the whole of its shareholding in PT Air Muring ("PTAM")
to PT Huma Indah Mekar for a total consideration of US$6,295,000, payable in
cash on completion.

PTAM, a wholly owned subsidiary of PGI, operates a rubber estate in Sumatra,
Indonesia. The value of its gross assets in the last published group accounts,
at 31st December 2004 amounted to #1.71 million and for the year ended on that
date it recorded a profit before tax of #658,000.

The disposal is conditional on the approval for the sale and transfer of the
shares by the Indonesian Government's Investment Co-ordinating Board and , if
necessary, by PGI, shareholders. In this latter event, a circular will be
despatched to shareholders in due course giving further details of the
transaction and setting out a notice to convene an extraordinary general meeting
at which a resolution to approve the transaction will be proposed.

The consideration will be used by the Group to reduce net group debt to
approximately #6.5 million which will considerably strengthen the Group's
financial position. Approximately #7.8 million of the total borrowings is in the
form of Loan Stock convertible at 25p a share. This is due to be converted or
repaid during 2006.

The disposal will result in the Group concluding its withdrawal from all its
Indonesian businesses. The Group is now focused on Jensen, the Russian property
investment management company which was acquired in April 2005, and on its
tropical agriculture businesses in Southern Africa.


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

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