Driver Group plc Acquisition of Minority Interest (3355P)
October 01 2013 - 2:00AM
UK Regulatory
TIDMDRV
RNS Number : 3355P
Driver Group plc
01 October 2013
1 October 2013
Driver Group plc
("Driver Group" or the "Company")
Acquisition of Minority Interest
Driver Group, the global consultancy to engineering and
construction industries, is pleased to announce further
developments in its Africa business. The Company has acquired the
remaining 49% shareholding of Driver Group Africa Pty from SADC
Project Consulting (Pty) subject to a condition precedent that the
authorities issue the appropriate Exchange Control confirmations in
due course. This takes the Company's shareholding in Driver Group
Africa Pty to 100%.
The initial cost of the acquisition is ZAR 3.3m (GBP0.2m)
satisfied in cash and a further ZAR 2.7m (GBP0.17m) satisfied by
grant of options over Driver Group shares. Further consideration,
to be satisfied by the grant of options over additional shares,
will be payable based on the audited net profits of the
consolidated Africa business as at 30 September 2013. Thereafter,
dependent upon profitability of Driver Group Africa Pty from 2014
to 2016 and lock-in arrangements of two key directors, additional
consideration (satisfied by the grant of options over shares) may
be payable under the terms of the agreement. The total maximum
consideration (including the initial consideration) is capped at
ZAR 3.3m (GBP0.2m) in cash and share options with a value up to ZAR
12.9m (GBP0.8m). The maximum number of shares under option pursuant
to the terms of the agreement will be calculated by reference to
the closing price of a Driver Group share on 1 October 2013.
Dave Webster, Chief Executive Officer of Driver Group said:
"This transaction is a great deal for Driver. The initial cost is
more than covered by the balance sheet and future costs are paid
out of retained profits. On an operational perspective, we have
full control and leadership commitment in the Region with the two
key directors from SADC transferring over as employees of Driver
Group Africa which will ensure we can more efficiently serve our
current and future clients as well as delivering better shareholder
value."
Enquiries:
Driver Group plc
David Webster, Chief Executive Tel: +44 (0) 1706 223999
Damien McDonald, Group Finance Director
Alan McClue, Non-executive Chairman Tel: +44 (0) 7791 546798
Charles Stanley Securities
Nominated Adviser & Broker
Marc Milmo / Carl Holmes Tel: +44 (0) 207 149 6000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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