Disposal of sports and board resignation (8978G)
19 May 2011 - 4:01PM
UK Regulatory
TIDMFAN
RNS Number : 8978G
First Artist Corporation PLC
19 May 2011
FIRST ARTIST CORPORATION PLC
("First Artist" or "the Company" or "the Group")
Disposal of First Artist Sport
Board Changes
First Artist Corporation plc (AIM: FAN) is pleased to announce
that it has conditionally reached an agreement to sell First Artist
Sport Limited ("First Artist Sport" or "FAS"), its football player
representation agency.
First Artist Corporation announced in June 2009 that it was
reviewing its options with regard to its non-core businesses, in
keeping with its stated objectives of debt reduction and the
redefinition of the Group with media at its principal focus.
Accordingly, First Artist Sport has been classified as "held for
sale" in the Company's accounts.
The Company has agreed to sell First Artist Sport to Jon and
Phil Smith (the "Purchasers") for an initial consideration of GBP1.
Additional consideration is payable to the Company equal to the sum
of 5 percent of revenue generated in the years ended 30 November
2011 and 2012 in excess of GBP3 million.
Simultaneously Jon and Phil Smith will leave the Board of the
Company with immediate effect. The Purchasers have entered into
compromise agreements to the value of GBP280,000 in aggregate
payable in cash by 31 July 2011. The Sale and Purchase Agreement is
conditional on, inter alia, a deed of release to be entered into
between the Company and AIB Group (UK) plc. The Purchasers will
assume all liabilities (including contingent liabilities) and
obligations of FAS with immediate effect. The Company will
write-off an inter-company debt that has accrued to the current
value of GBP0.4 million.
The following table summarizes the financial condition of First
Artist Sport.
15 months to 30 November 6 months ended 31
2009* May 2010*
------------ ------------------------- ------------------
GBP000 GBP000
------------ ------------------------- ------------------
Revenue 2,950 372
------------ ------------------------- ------------------
EBITDA 77 (799)
------------ ------------------------- ------------------
Net Assets 152 (774)
------------ ------------------------- ------------------
* Audited accounts
Commenting on his departure from the Board of First Artist
Corporation, Jon Smith said: "I started First Artist in 1986. The
Company has enjoyed some considerable success through the years,
including our public floatation in 2001. Having completed the
transaction with David Stoller and Jeremy Barbera in December of
last year I have decided to step down from the Board and leave the
Company. David, Jeremy and their team are immensely talented and I
believe are best placed to take the Company forward and capitalize
upon the assets that it possesses. I would like to wish everyone at
First Artist every success in the coming years and as a shareholder
look forward to sharing in their achievements".
Commenting on today's announcement, Jeremy Barbera, Chief
Executive of First Artist said: "the board is grateful to Jon for
the many years of support he has given to First Artist, and for
guiding the company in its journey from a small private company to
an AIM listed transatlantic enterprise. The board would also like
to thank Phil Smith for 19 years of sterling service on behalf of
the group. We look forward to building upon the successful
foundation of Dewynters and Spotco, as First Artist Corporation
continues to evolve into a global leader in the media and
entertainment sector.
Enquiries:
First Artist Corporation Plc
Jeremy Barbera/David Stoller/ Shirley Stapleton Tel: +44 20
79930000
Seymour Pierce Limited
Stewart Dickson /Tom Sheldon Tel: +44 20 71078000
Bishopsgate Communications Limited
Duncan McCormick Tel: +44 207 5623350
This information is provided by RNS
The company news service from the London Stock Exchange
END
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