Interoute Telecommun - Disposal
10 October 1997 - 12:55AM
UK Regulatory
RNS No 0014k
INTEROUTE TELECOMMUNICATIONS PLC
9th October 1997
INTEROUTE TELECOMMUNICATIONS PLC
"INTEROUTE""
Interoute Telecommunications PLC announces that it has
today disposed of its 51% shareholding in Telecom FM Ltd
("TFM") for a cash consideration of #425,000. Under the
terms of the Sale Agreement, TFM has also repaid the
outstanding loan from Interoute to TFM of #1.2 million.
TFM is primarily a telecommunications products company,
specialising in network access devices. For the year
ended 31 May 1997, TFM achieved a turnover of #1.9
million and incurred a loss before taxation of #240,000.
TFM's net assets at 31 May 1997 were #330,000.
The shareholding has been purchased by TFM Group Limited
with backing from a venture capital house. Mr Colin
Mulford and Mr Simon Taylor are Directors of, and
together have an interest in, TFM Group Limited. Mr
Mulford and Mr Taylor are currently Directors of TFM and
each has an interest of 24.5 per cent in the share
capital of TFM and a controlling interest in TFM Group
Limited.
The Directors of Interoute have agreed to the sale of TFM
because TFM's business is not a core activity of
Interoute. They consider that the funds released by the
sale can be more effectively utilised by supporting
Interoute's core activities in Europe.
The Directors of Interoute, having consulted with John
East & Partners Limited, the Company's nominated adviser,
are of the opinion that the terms of the disposal are
fair and reasonable so far as the shareholders of
Interoute are concerned.
John Mittens, Chief Executive of Interoute said:
"Interoute originally took an interest in Telecom FM in
order to purchase competitively priced pre-programmed
diallers which are installed in the customers' premises.
The terms of this transaction will enable Interoute to
retain the commercial advantages of attaining the same
competitive prices for diallers, while using the proceeds
of the sale to support our European network across key
European markets."
END
DISUBGGCUBGMGCB
Individual Rest (LSE:IRC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Individual Rest (LSE:IRC)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Individual Rest (London Stock Exchange): 0 recent articles
More Interoute Telecommun News Articles