14th Jun 2005 09:18
Berkeley Group Holdings (The) PLC14 June 2005 The Berkeley Group Holdings plc (Berkeley) The Crosby Group plc (Crosby) Berkeley has received approaches, including one from Lend Lease CorporationLimited, regarding the possible disposal of Crosby, its subsidiary that operatesprincipally from Manchester, Leeds, Birmingham, Cardiff and Bristol. Discussionsare at the preliminary stage and may or may not lead to the sale of thebusiness. In August 2003 Berkeley announced a transaction involving Crosby ("theCrosby Transaction"), which was designed to incentivise the Crosby executiveteam and maximise Berkeley shareholder value through the generation of operatingcash flow. This continues to be successfully executed. For further information please contact: Cardew GroupTim Robertson Tel: 020 7930 0777 Notes to editors: Summary of the Crosby Transaction Under the Crosby Transaction, entered into in August 2003, the Crosby ExecutiveTeam subscribed for new B Shares in Crosby. Broadly, these shares are entitledto 50.01% of the economic and voting rights of Crosby after the generation of£450 million of operating cashflow. The B Shares carry dividend and votingrights if Crosby makes agreed milestone payments to Berkeley every six monthsand generates overall £450 million of operating cashflow within seven years. Inaddition, economic and voting control will not pass unless the gross assets ofCrosby at the time control passes are less than £75m and the net assets are lessthan £50m. Until this time, Berkeley will remain in control of Crosby andtherefore will continue to consolidate Crosby as a subsidiary. Thereafter,Berkeley will retain 49.99% of the shareholding. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Berkeley Group