13th Oct 2008 07:00
13 October 2008
Raven Mount plc ("Raven Mount" or the "Company")
Disposal of shareholding in Raven Audley Court plc ("Audley") for £15.0 million (the "Disposal")The Company is pleased to announce that it has agreed to dispose of its shareholding in Audley, a subsidiary of Raven Mount, for £15.0 million to AC Holdings SARL, a newly formed company which is indirectly, wholly owned by Moorfield Real Estate Fund II, the investment fund of Moorfield Group Limited ("Moorfield"), payable in full on completion, which is subject to the satisfaction of certain conditions on or before 29 October 2008, including the formal consent of Audley's banks to the disposal. In addition, as part of the transaction, Moorfield has agreed to take an assignment of the group's Waterman's Business Park, Staines office lease.Audley is actively involved in the development and management of Independent Living facilities for the elderly. Raven Mount has a 75% equity interest in Audley, with the remaining 25% being owned by the Audley management team.Audley made a loss after tax of £2.3 million for the 12 months ended 31 December 2007. As at 30 June 2008, Audley had net assets of £16.4 million, £55.6 million of property assets and third party loans of £34.4 million that are being transferred with Audley as part of the Disposal. The Disposal will result in a group loss on disposal of approximately £4.0 million. The funds received from the Disposal will be used by the Company for working capital purposes. Following the transaction, the Company will have no bank debt, with the exception of its 50% share, currently £4.5 million, of the debt in the JV project, The Lakes in the Cotswolds. Commenting on the Disposal, Bim Sandhu, Chief Executive of Raven Mount, said: "The Disposal enables our restructuring to proceed with substantially more Raven Russia shares being distributed to shareholders than might otherwise have been the case. The Disposal will leave us with net cash balances even before the separate receipt of the £15m cash that we shall be receiving as part of the disposal of our property fund management business. In an increasingly difficult year for all of us, we have now agreed both the sale of the Russian property fund management business and of Audley and successfully arranged a full insurance buy-out of the Swan Hill Pension Scheme."Enquiries:
Raven Mount plc 020 7235 0422
Bim Sandhu, Chief Executive
Mark Kirkland, Finance Director
Shore Capital and Corporate Limited 020 7408 4090
Nominated Adviser and Joint Broker
Guy Peters
Pascal Keane
Oriel Securities Limited 020 7710 7600
Joint Broker
Malcolm Strang
Michael Shaw
Notes for Editors: Raven Mount is an AIM quoted company whose principal areas of operation are property fund management, property development and the development and operation of Independent Living facilities. Raven Mount was founded in November 2003 by Anton Bilton (Executive Chairman), Bim Sandhu (Chief Executive) and Glyn Hirsch (Executive Deputy Chairman) and took control of Swan Hill Group PLC, the housebuilder, in December 2003 in a hostile takeover supported by Swan Hill's four largest shareholders. In December 2004, shareholders approved the reversal of Anton Bilton and Bim Sandhu's private residential development group, Raven Property Holdings plc, for a total consideration of £39.9 million paid in Raven Mount shares and began a strategic reinvention of the business. In July 2005, Raven Mount subscribed £10 million towards the £153 million flotation of Raven Russia Limited ('Raven Russia') on AIM. Raven Russia was formed at Raven Mount's instigation as a vehicle for institutional shareholders to invest in the Russian property market with an initial focus on the Warehouse property market in the Moscow and St Petersburg regions. Raven Mount's wholly owned subsidiary, Raven Russia Property Management Limited, acts as the property adviser to Raven Russia. In April 2006, Raven Russia raised a further £310 million through the placing of 270 million shares at £1.15 per share. In July 2008, Raven Mount announced the proposed disposal of Raven Mount's Russian property fund management business to Raven Russia. This transaction, which has been approved by Raven Mount shareholders, is due to complete in November 2008. Raven Mount has outline planning consent, in a joint venture with John Hitchcox and Yoo Limited, comprising second homes in 650 acres at Coln in the Cotswolds, of which it currently has detailed consent for 83 units. www.theravengroup.co.uk www.thelakesbyyoo.comwww.ravenrussia.com
Related Shares:
RAV.L