12th May 2005 07:01
Numis Corporation PLC12 May 2005 EMBARGOED FOR RELEASE UNTIL 7:00AM THURSDAY 12TH MAY NUMIS - POTENTIAL DISPOSAL OF ITS INTEREST IN COMDIRECT LTD Numis Corporation plc ("Numis") announces that it has entered into a contingentagreement to sell its 26.3% interest in comdirect Ltd. Together with othershareholders in Execution Services Group Limited ("ESGL"), the holding companyof comdirect Ltd., Numis has entered into an arrangement of put and call optionsin respect of their interest in ESGL with Boursorama SA, France's largest onlineretail broker. The put and call options can be exercised over the period 1 August 2005 to 30September 2005 and, if exercised, would give Boursorama SA control over ESGL.The ESGL shareholders have granted Boursorama SA a call option which ifexercised would result in the sale of ESGL in August this year. If Boursorama SAhave not exercised their call option by 1 September 2005, the ESGL institutionalshareholders, including Numis, each have an option to sell the entire issuedshare capital of ESGL to Boursorama SA. This put option is exercisable until 30September 2005. The exercise of the option by either party will be contingenton, inter alia, the FSA approving the acquisition of ESGL by Boursorama SA. In the event of either option being exercised, Numis would receive approximately£14.0 million in cash, thereby realising an estimated pretax profit of £8.5million less the share of profits equity-accounted for by Numis arising in theperiod until the exercise of the option. The current book value of Numis holdingin ESGL is £4.5 million. Any proceeds from the disposal would be used in thedevelopment of Numis' core business. ESGL has no assets other than its holdings in comdirect Ltd, which is an onlineretail brokerage. Numis has a 26.3% interest in the ordinary share capital ofESGL. Numis' share of pretax profits of ESGL for the six months to 31 March 2005was £228,000. Numis and comdirect Ltd both expect to continue their mutually profitabletrading relationship, with Numis continuing to provide its Retail ServiceProvider (RSP) facilities to comdirect Ltd. Notes to Editors: comdirect is the UK's second largest on-line stockbroker and the UK's thirdlargest retail stockbroker by share trading volumes and the market leader incovered warrants. Currently 22 retail brokers trade with Numis, taking advantage of its expandingRSP offering. Contacts: Numis Corporation Oliver Hemsley, Chief Executive 020 7776 1500 Brunswick Gill Ackers 020 7396 5382Rachel Quigley 020 7396 3507 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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