9th Aug 2019 08:59
(Alliance News) - IWG PLC on Friday said it has inked a second sale and franchise agreement with Japanese meeting room rental business TKP Corp for its Taiwanese operations.
Shares in IWG were trading 1.2% higher at 416.10 pence each in morning trade in London.
The office space provider, which trades under Regus brand name, will divest its Taiwanese operations to TKP and has agreed an exclusive master franchise agreement for the country.
The Taiwanese agreement follows the April deal between IWG and TKP in respect of the divestment of IWG's Japanese operations and related franchise agreement.
Under the new agreement, IWG will sell its Taiwanese subsidiaries, including 14 flexible co-work centres, to TKP for GBP22.7 million payable in cash. The transaction is expected to complete in September.
The company also has agreed a long term master franchise agreement which provides TKP with rights to the use of the HQ, Regus and SPACES brands in Taiwan.
The Taiwanese business contributed GBP6.8 million to IWG revenue and generated earnings before interest, taxes, depreciation and amortisation of GBP1.4 million in 2018. The gross assets of the divested business as at December 31 stood at GBP9.9 million.
IWG intends to use the proceeds from the divestment for general corporate purposes.
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