mporium Group PLC Disposal of Global Mobile Transactions Limited (4088E)

TIDMMPM

RNS Number : 4088E

mporium Group PLC

03 November 2015

3 November 2015

mporium Group PLC

("mporium", the "Company" or the "Group")

Disposal of Global Mobile Transactions Limited

mporium Group PLC (AIM: MPM), the mobile commerce specialist, announces the disposal of its non-core operation, Global Mobile Transactions (Isle of Man) Limited ("GMT") (the "Disposal").

GMT was originally set up as a 24/7 call centre that provided support services to customers of mporium Limited and those of third parties. Following the Group's change in strategy that was outlined in Q2 2015, the Board have taken the view that GMT is no longer central (or core) to the Company's strategy going forward.

GMT is being acquired by Dominic Keen, the previous CEO of the Company, for a total consideration of GBP1 on a cash free debt free basis. It is a term of the Disposal that, should GMT be sold during the three years following the Disposal, mporium will receive 25% of any sales proceeds between GBP250,000 and GBP500,000 and 50% of any proceeds exceeding GBP500,000.

The majority of the existing mporium customers that are currently serviced through GMT, together with any related debtor balances, will be assigned back to mporium and these customers will continue to be serviced by the Group. GMT will be left with two third-party call centre contracts together with 14 employees and the associated ongoing liabilities relating to those call centre contracts. Historically the two contracts remaining with GMT have operated on a near breakeven basis.

As at 31 December 2014, GMT had net liabilities of GBP893,000, primarily relating to an intercompany loan (the "Loan"), and reported a comprehensive loss of GBP550,000 for the year. The Loan, which has been reduced further since 31 December 2014, relates to the original establishment costs of GMT and will be written off to leave GMT with a small level of net liabilities. Given that the Loan did not show in the Group's consolidated accounts, the directors of the Company anticipate that the effect of the waiver of the Loan on mporium will be negligible.

Related party transaction

The disposal of GMT is classified as a related party transaction under Rule 13 of the AIM Rules for Companies by virtue of Dominic Keen having been a director of the Company within the last twelve months.

The Directors of the Company, having consulted with the Company's nominated adviser, N+1 Singer, consider that the terms of the disposal are fair and reasonable insofar as the shareholders of mporium are concerned.

Ends

Enquiries:

 
mporium:         020 3735 5914 
Richard Gordon 
 
N+1 Singer:      020 7496 3000 
Shaun Dobson 
 Alex Wright 
 
Buchanan:        020 7466 5000 
Charles Ryland 
Vicky Watkins 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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November 03, 2015 08:57 ET (13:57 GMT)