8th Apr 2015 06:51
LONDON (Alliance News) - City of London Group PLC said Wednesday that it has reached an agreement to sell its interests in litigation fund management associate Therium Capital Management Ltd for GBP3.4 million.
This will consist of GBP1.7 million in cash on completion, and the balance as a deferred consideration to be repaid two years from completion, or earlier, from performance fees and incremental management fees. This contingent payment will be guaranteed by Therium's new partner, City of London said, who was not disclosed.
A further contingent payment will be paid if performance fees exceed a certain level, City of London said.
City of London will use the proceeds of the sale to repay its debt.
It has one remaining direct investment of GBP412,000 in a litigation case, it said. However, following a "material adverse change in the merits of this case" it has decided not to pursue it further and will provide in full for this investment. City of London retains investments of around GBP200,000 in limited liability partnerships which have exposure to litigation cases managed by Therium.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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