25th Jun 2007 07:03
Restaurant Group PLC25 June 2007 The Restaurant Group plc ("TRG") Living Ventures - Disposal of Living Room business and repayment of outstandingTRG liabilities The Board of TRG announces that its associate company, Living Ventures Ltd ("Living Ventures"), has sold its interest in the The Living Room business ("Living Room") for a total consideration of £28 million (free of debt) toUltimate Leisure Group PLC ("Ultimate"). Living Ventures has used the proceedsto reduce Bank indebtedness, repay outstanding loan note interest and preferencedebt due to TRG, with the remaining proceeds being distributed to theshareholders of Living Ventures. TRG expect to receive a total of £7.8m in cashas a result of this transaction including outstanding loan note interest,repayment of TRG's preference debt and equity distribution. Immediately prior to the sale to Ultimate, a restructuring of the assets ofLiving Ventures Limited took place. TRG, Tim Bacon, Jeremy Roberts and othershareholders will retain their investments in the residual business (TRG 38%),which consists of a group of restaurants trading under the Blackhouse Grill andEst Est Est brands. TRG has terminated its call option granted in March 2005,to purchase back Est Est Est from Living Ventures in 2008. Tim Bacon and JeremyRoberts have an option to purchase TRG's interest in the residual business in2010. If this option is not exercised TRG have an option to repurchase Tim Baconand Jeremy Roberts' shareholding in the residual business. As a result of theabove transactions, the carrying value of the residual business in TRG'saccounts will be reduced to £nil. The Directors of TRG anticipate that the effects of these transactions willenhance earnings in the first full year. (see note 1) Trading Update The Board is pleased to announce continued strong trading since our last updateat the AGM on 16 May 2007. For the 24 weeks to 17 June 2007, Group like-for-likesales are 5% ahead of the same period last year. We look forward to reportingvery satisfactory interim results in September. 25 June 2007 Enquiries The Restaurant Group plc Tel: 0845 612 5001 Andrew Page, Chief ExecutiveStephen Critoph, Finance Director College Hill Tel: 0207 457 2020 Matthew SmallwoodJamie Ramsay Notes to editors 1. This statement should not be taken to mean that earnings per share of TRG will necessarily exceed historic earnings per share of TRG and no forecast is intended or implied. 2. Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations, and by their nature, are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance expressed or implied by the forward-looking statement. The information does not assume any responsibility or obligation to update publicly or revise any of the forward-looking statements contained herein. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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