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STM sells Jersey trust and company services businesses
StockMarketWire.com
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Cross-border financial services group STM said it sold its Jersey-based trust and company services businesses privately-owned Imperium for a minimum £1.4 million.
STM said the deal completed its strategy to exit the CTS sector, and focus on its core activities of pension administration and life assurance.
'The sale proceeds will further contribute towards funding organic growth opportunities and build on the cash resources available for further M&A activity,' it added.
The sale had two staged consideration payments totalling £1.86 million, with the amount payable upon completion being £1.26 million, with the final payment of 0.60 million being paid six months after completion.
Cash of £0.46 million would be left within the sale companies representing the Jersey capital requirement, thus giving a net minimum cash consideration of £1.40 million.
'In addition, the sale agreement allows for a further consideration payment of 50% of any revenue surplus above £1.15 million of revenue that is categorised as recurring revenue,' STM said.
'This calculation will be based on the twelve months trading from date of completion. '
'In addition to the consideration receivable from the buyer, certain net assets relating to debtors and work-in-progress are ringfenced by the sale companies for the benefit of STM, and these will be paid as these assets are converted to cash at bank.'
'It is anticipated that this will amount to £0.42 million and will be principally received in the first six months post completion.'
Story provided by StockMarketWire.com
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