22nd Sep 2006 14:23
Rightmove Plc22 September 2006 22 September, 2006 Rightmove plc disposes of 25% stake in TMG Holdings Ltd In January 2006, in expectation of developing a Home Information Pack ("HIPs")business, Rightmove invested £3.25m to acquire a 25% stake in TMG Holdings Ltd("TM"). TM is a provider of searches from local authorities and other bodies,which are expected to be a legal requirement of HIPs under legislation proposedby the government. As at 31 December 2005, TM had £4.36 million of gross assetsand generated £31,329 profit before tax. The Chief Executive Officer of TM isMr. John Carolan, and the Chief Operating Officer is Mr. Trevor Brown. On 26th July 2006, Rightmove announced its intention to discontinue investmentin HIPs in response to government changes to the proposed legislation. The TMshareholder agreement explicitly made provision for circumstances in whichRightmove might be unable to order substantial volumes of searches from TM, suchas a revision of the government's plans for HIPs. As a result, the other TMshareholders have a right to buy back Rightmove's stake in TM. On 22 September 2006, Rightmove disposed of its 25% stake in TM to the other TMshareholders (Balanus Limited, Connells Limited and Halifax Estate AgenciesLimited) for an aggregate cash consideration of £3.25m, before costs. The proceeds of the transaction will be used by Rightmove to develop the coreoperations of the company. Information please contact: Rightmove 020 7318 9095Graham Zacharias, Finance Director Maitland 020 7379 5151Brian Hudspith This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Rightmove