22nd Apr 2020 18:57
(Alliance News) - Studio Retail Group PLC on Wednesday said the UK Competition & Markets Authority has commenced its Phase 1 review into the sale of Findel Education Ltd.
In December, the retail and education company had agreed to sell Findel Education to the Council of the City of Wakefield for GBP50 million on a debt and cash free basis. It said cash realised from the sale will be used to make a voluntary payment to the company's defined benefit pension fund with the remainder used to reduce debt.
On Wednesday, Studio Retail said that while it previously expected the sale to complete in April, the regulatory authority has experienced difficulty in compiling third-party views in relation to the disposal due to the Covid-19 outbreak.
However, the company today noted that the CMA has formally launched its Phase 1 review. It added that it now expects the sale to complete by August.
Studio Retail shares closed 0.5% lower at 188.00 pence each on Wednesday in London.
By Ife Taiwo; [email protected]
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