13th Apr 2007 10:03
St. Modwen Properties PLC13 April 2007 St. MODWEN PROPERTIES PLC Disposal of Shareholding in Northern Racing PLC St. Modwen Properties PLC ("the Company"), the regeneration specialist, hasagreed, subject to the transaction going unconditional, to sell its 27.2%shareholding in Northern Racing PLC ("Northern") to Aldersgate InvestmentsLimited ("Aldersgate") (a company wholly-owned by David and Simon Reuben) for£17.7m. The investment, which is held by the Company's Employee Share Trust, was valuedin the St Modwen group accounts at 30th November 2006 at £11m. The proceeds ofthe disposal will be held to satisfy current and future benefits of employees ofthe Company. St Modwen and other principal shareholders in Northern who together own 86.2% ofNorthern's share capital have agreed to sell their holdings at a price of 185pper share. An offer is being made by Aldersgate for the remainder of Northern'sshare capital at 200p per share. The difference on price arises because an associate of Aldersgate had acquiredan interest in Northern at a price of 200p requiring any offer to be made atthat price or above. After detailed discussions Aldersgate felt it could notjustify an enterprise value for Northern based on 200p. It was therefore agreedthat the offer should proceed on the basis that the principal shareholdersshould receive 185p whilst securing the higher price for the remainingshareholders. Anthony Glossop, Chairman of the Company, said: "This disposal marks the Company's exit from the racing industry which beganwith the acquisition of Uttoxeter Racecourse in 1988. "Our involvement has been both profitable and highly successful in regenerationterms with many of the courses playing a major role in their local leisurefacilities and having lacked investment for many years before their acquisition. "The racecourse involvement also started a trend, carried on with TrenthamGardens, Solihull Ice Rink and the Avonmouth landfill operation of the Companybeing willing to take on a limited operational role to help it secure an overallimproved regeneration solution. "I would like to thank all the employees of Northern for their support duringthe years of our involvement and to wish them every success in the future". 13 April 2007 For further information please contact: St. Modwen www.stmodwen.co.uk Bill Oliver, Chief Executive 0121 222 9400 Tim Haywood, Finance Director College Hill Matthew Gregorowski 020 7457 2020 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SMP.L