18th Jul 2014 15:47
LONDON (Alliance News) - Doriemus PLC said Friday that it has decided to sell its traded endowment policies business, TEP Exchange Holdings Ltd, as it has "struggled to compete effectively."
The company said that investor demand for traded endowment policies has reduced substantially, and as a result revenue from the business has declined. Revenue from the business reduced to GBP220,000 in 2013 from GBP915,886 in 2012.
The business is not "strictly aligned" with its investment policy, it said, and thus it has opted to sell the business. It will enter into a sale and purchase agreement with SL Investment, Close Horizons Limited and Morex Commercial to conditionally acquire the business for GBP1.
The sale is dependent on shareholder approval, and consent from the Financial Conduct Authority.
If approved, the company reclassified as an investment company, and will reaffirm its existing investment policy.
Shares in Doriemus closed down 2.3% at 0.171 pence Friday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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