SerVision plc Update re. proposed sale of SerVision Limited (3404R)

TIDMSEV

RNS Number : 3404R

SerVision plc

14 June 2018

14 June 2018

SerVision plc

("SerVision" or the "Company")

Update re. proposed sale of SerVision Limited and suspension

Further to the announcement released by the Company on 5 June 2018 the Board of SerVision (the "Board") announces that, on 10 June 2018, the Jerusalem District Court in Israel (the "Court") heard the Trustees' proposal for the disposal of SerVision Limited, the Company's main operating subsidiary. At this hearing the Court approved the sale of SerVision Limited to A.D.I. Systems Limited ("ADI" or the "Purchaser") for a total consideration of NIS7.0 million payable in cash (equivalent to approximately GBP1.46 million / USD1.96 million at the prevailing exchange rates) (the "Disposal").

ADI was established in 1984 and is based in Rishon Letzion, Israel. ADI imports, markets and installs a variety of smart products for the Israeli car market including audio, multimedia, convenience, communications, protection and detection systems.

It is anticipated that a sale and purchase agreement will be entered into between ADI and the Trustees by the end of June 2018.

The Board has been informed that a total of NIS0.85 million (equivalent to approximately GBP0.17 million / USD0.24 million) of the cash consideration was transferred to the Trustees on 10 June 2018 and the balance of NIS6.15 million (equivalent to approximately GBP1.29 million / USD1.72 million) is expected to be paid by ADI to the Trustees within 30 days.

Completion of the Disposal is expected to occur on the earliest of: (i) 30 days from the Court approval of the Disposal; and (ii) the date on which the Trustees receive the balance of the cash consideration.

As previously announced the Company ranks behind both the secured creditors and other general creditors and therefore the expectation of the Board was that it would be extremely unlikely that any value would be returned to the Company from its debts and shareholding in SerVision Limited. The cash consideration that has been agreed to be paid by ADI is less than the amounts owed to the Company's secured creditors and other general creditors and therefore, unfortunately, the Board confirms that the Company will receive no value or consideration from the proposed sale of SerVision Limited to ADI.

For the year ended 31 December 2016, SerVision Limited recorded an audited loss before tax of USD2.62 million on revenues of USD1.63 million. As at 30 June 2017 the unaudited net assets of SerVision Limited were USD3,814.

The Company's ordinary shares remain suspended from trading on AIM.

Further updates will be provided by the Company at the appropriate time.

Certain terms used in this announcement shall have the same meaning as the definitions in the Company's announcement released on 18 April 2018.

-ends-

For further information:

 
SerVision plc 
Eitan Yanuv (Finance Director) 
 Antony Legge (Non-Executive Director)                    [phone] 
Allenby Capital Limited (Nominated Adviser 
 and Broker)                                              [phone] 
Nick Athanas 
 John Depasquale 
 
 
Leander PR (Financial PR) 
Christian Taylor-Wilkinson   [phone] 
 

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June 14, 2018 02:00 ET (06:00 GMT)