22nd Jan 2015 09:44
LONDON (Alliance News) - Worthington Group PLC on Thursday said it has withdrawn from its investment in CPS Energy Resources PLC.
The investing company said the investment was not included in the calculation of consolidated assets, profits, sectors or geographic locations which it released earlier this month.
On January 9, the Financial Conduct Authority ruled the new acquisitions made by Worthington constituted a reverse takeover of the company, as the deals will make it a "fundamentally different business".
Worthington has still not released full details of the acquisitions in question. Commenting on the FCA's decision, Worthington said that, in its view, it was "an investment business prior to the transactions and will remain one following the transactions."
"Whilst ideally we would have liked to avoid triggering a reverse takeover, we respect the Financial Conduct Authority's decision and will press ahead with completion of the company's prospectus," said Chief Executive Doug Ware.
Following the transactions, Worthington said it will have interests in litigation funding, media, clean energy, mining, oil and gas and property across the world, including the UK, Australasia, Africa, North America and India.
Consolidated net assets of the group following the conversion of loan notes used to finance the investments is expected to exceed USD2 billion and generate net profits over USD20 million in the first full year following the acquisitions, with its net asset per share increasing to GBP5 per share after financing costs, it said on January 9.
Worthington shares are still suspended.
By Sam Unsted; [email protected]; @SamUAtAlliance
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