12th Jan 2006 10:11
Chime Communications PLC12 January 2006 CHIME COMMUNICATIONS PLC ("Chime" or the "Company") Chime sells remaining shares of HHCL Group Limited ("HHCL") to WPP Group (UK) Limited ("WPP") Chime announces that on 31st December 2005 it exercised its option to sell theremaining shares (51%) that it holds in HHCL to WPP. The consideration payable will be calculated in accordance with the agreementbetween Chime and WPP dated 15th January 2003 as 51% of eight times the averagepretax profits of HHCL for the years ended 31st December 2005 and 2006 subjectto an overall cap of £12 million. A non-refundable advance payment of £2.75million has been paid. The current outlook for 2006 suggests that no additionalpayment will occur. The Company also announces that it will use some of the proceeds from the saleto begin a programme to purchase Chime Ordinary Shares, on its own behalf overthe next few years for cancellation. This programme will commence after theannouncement of Chime's preliminary results on 8th March 2006. Any share purchase will be effected within certain pre-set parameters, and inaccordance with the authority to repurchase shares given at the Company's AnnualGeneral Meeting, which is subject to annual renewal. Any purchases will also bemade in accordance with Chapter 12 of the Listing Rules which requires that themaximum price paid be limited to no more than 5% above the average market valuefor the shares as derived from the London Stock Exchange Daily Official List forthe five business days immediately prior to such purchase. The Directors believe that the implementation of this share buy-back programmewill result in a more efficient capital structure for the Company as well asenhancing the Company's earnings per share. - ENDS- For further information, please contact: Lord Bell Tel: 020 7861 8515ChairmanChime Communications plc Chris Satterthwaite Tel: 020 7861 8515Chief ExecutiveChime Communications plc Robin Tozer Tel: 020 7861 3232Bell Pottinger Corporate and Financial This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CHW.L