Porta Communications PLC Disposal of Interest in Capital Access (2847K)
December 12 2018 - 7:42AM
UK Regulatory
TIDMPTCM
RNS Number : 2847K
Porta Communications PLC
12 December 2018
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
12 December 2018
Porta Communications Plc
("Porta" or "the Group")
Porta Disposes of Interest in Capital Access Holdings Limited
and
Cancels Remaining GBP1m Guarantee
Porta Communications Plc (AIM: PTCM) announces that it has
successfully entered into an agreement with Industrial Lending 1
("IL1") to dispose of its entire 39.5% holding in Capital Access
Holdings Limited ("Capital Access") to IL1 in return for IL1
agreeing to cancel Porta's guarantee of up to GBP1m to IL1 in
respect of Capital Access.
As at 30 June 2018, the investment in Capital Access had a
carrying value of nil on Porta's balance sheet, having been fully
written-down during 2017. As at the date of disposal, Porta
recognised net debts owed by Capital Access of GBP0.1m, which will
be written-off as part of this transaction. Capital Access
contributed a loss of GBP119,784 during the year to 31 December
2017, as reported in Porta's result for the year to 31 December
2017.
No cash consideration is payable to Porta. In exchange for
Porta's equity holding in Capital Access, writing off the
recognised net debts owed to Porta by Capital Access of GBP0.1m and
the provision of three months' free rent premises for Capital
Access, IL1 have agreed to release Porta from its remaining
guarantee of up to GBP1m of the debt that Capital Access has with
IL1, which is recognised as a contingent liability by Porta and if
called, would have been satisfied by the issue of Ordinary Shares
in Porta at a value of no less than 10p.
Commenting on the disposal, Porta Joint CEO, Emma Kane said:
"As we continue to consolidate and transform our business and
eliminate non-core assets, we have also looked to de-risk areas in
which we have limited influence or control. Importantly, with this
transaction, we have removed a potential GBP1m liability from the
Group, while retaining the capability within the Group to offer
investor access services through our existing wholly-owned
subsidiary Newgate."
- ends -
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Enquiries to:
Porta Communications Plc
Rhydian Bankes, CFO
www.portacomms.com
+44 (0) 20 7680 6550
Newgate Communications (Media Enquiries)
Bob Huxford
Adam Lloyd
+44 (0) 20 7680 6550
porta@newgatecomms.com
Grant Thornton UK LLP (Nominated Adviser)
Samantha Harrison
Ben Roberts
Seamus Fricker
+44 (0) 207 383 5100
N+1 Singer (Broker)
Mark Taylor
Lauren Kettle
+44 (0) 20 7496 3000
Notes for Editors
-- Porta is a fully integrated communications agency, operating
locally, nationally and internationally, with specialisms including
financial, corporate and consumer public relations, public affairs
and research and multi-capability marketing, brand and creative
communications.
-- The Group has offices in Abu Dhabi, Beijing, Brisbane,
Bristol, Canberra, Cardiff, Leeds, Edinburgh, Hong Kong, London,
Manchester, Melbourne, Perth, Shanghai, Singapore and Sydney.
-- Further information on Porta Communications is available at www.portacomms.com
-- Further information on Newgate Communications is available at www.newgatecomms.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DISEADAAFDKPFFF
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