25th Jan 2006 09:19
Character Group PLC25 January 2006 Issued on behalf of The Character Group plcDate: Wednesday, 25 January 2006 IMMEDIATE RELEASE The Character Group plc ("Group" or "Company" or "Character") Proposed sale of Character Group's Digital Division Following the Group's announcements dated 9 January 2006 and 19 January 2006,the Board of The Character Group plc announces that contracts have today beenexchanged with Flextronics Sales and Marketing (A-P) Limited ("Flextronics") forthe sale of the Group's Digital business, trading under the name World WideLicences Limited ("WWL"). The consideration for the Digital business is US$16 million for the goodwill andan additional sum for the closing inventory, which will be determined oncompletion of the transaction, which is expected to be in February 2006. WWL, based in Hong Kong, is a wholly owned subsidiary of the Group and isengaged in the design, development and manufacture of digital products, whichprincipally consist of digital cameras in addition to managing the Hong Kong andChinese logistics for the overall Group. The Group shall continue to have apresence in Hong Kong which together with its new facilities in Shenzhen, Chinawill enable the Group to continue the growth of its Toys, Games and Giftsbusiness. Commenting on the proposed sale of the Digital business, Richard King, Chairmanof the Group, said: "The sale of the Digital business will allow the Group to focus entirely uponthe development of its toys, games and gifts business which has, and continuesto have, a number of very exciting opportunities to build on our strongperformance to last Christmas." "The Directors also consider that a sale is a better option for the Group than ade-merger, which was previously under consideration." "The Board is confident that Flextronics is uniquely placed to develop thedigital business to a far higher level than Character could achieve in the sametimescale." "The proposed sale of the Digital business is believed to be in the bestinterests of the Group's shareholders but, as importantly, it gives moreopportunity and future development for the employees within WWL who have playeda significant role in developing the business to date." "We are delighted that The Character Group plc has accepted our offer topurchase its digital business" stated Peter Tan, President and Managing Directorof Flextronics Asia. Mr Tan added: "WWL's talents will provide us with an exciting opportunity tofurther enhance our capabilities that further support our penetration into theconsumer products market" The proposed sale of the Digital business of WWL is subject to shareholderapproval. A Circular, containing full details of the proposed sale of theGroup's Digital business together with details of the EGM, will be posted toshareholders shortly. Enquiries:Richard King, Chairman Fiona Tooley, DirectorKiran Shah, Group Finance Director Katie Dale, Senior Account ManagerThe Character Group plc Citigate Dewe RogersonTel: +44 (0) 20 8949 5898 Tel: +44 (0) 121 455 8370Mobile: +44 (0) 7836 250150 (RK) up to 12 noon Mobile: +44 (0) 7785 703523 (FMT)Mobile: +44 (0) 7956 278522 (KS) Mobile: +44 (0) 0770 788624 (KD)www.thecharacter.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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