5th Dec 2006 14:11
Mulberry Group PLC05 December 2006 MULBERRY GROUP PLC 5 December 2006 RELATED PARTY TRANSACTION PURCHASE OF MULBERRY STORE ON THE BROMPTON ROAD Mulberry Company (Sales) Limited (the "Company"), a wholly owned subsidiary ofMulberry Group plc has purchased the stock and shop fittings of the Mulberryshop at 171 - 175 Brompton Road, London, and taken over the lease by way ofassignment. The shop was operated by Mul 21 (UK) Limited (Mul 21) an associated company ofChallice Limited the majority shareholder in Mulberry Group plc, furthermore Mul21 had a sublease on the shop from Canbe Services Limited another associatedcompany of Challice. The total consideration consists of the value of the stock estimated at£287,000, which is subject to validation by a stock take, plus the fixed assetsincluding shop fittings purchased for £100,000. The lease will be assigned tothe Company. The current rent is £475,000 per annum. There are currently noprofits attributable to the shop. The Company has decided to take control of the shop for marketing andoperational reasons. The shopfit will be updated and a new retail systeminstalled. The Directors having consulted with the Group's Nominated Adviser, Teather &Greenwood, are of the opinion that the terms of the transaction are fair andreasonable insofar as its shareholders are concerned. There is no further information required to be disclosed under Schedule Four ofthe AIM Rules. Enquiries: Teather & Greenwood Tel: 020 7426 9000 Mark Dickenson Fred Walsh This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Mulberry Group