Tungsten Corporation PLC Agreement Reached for Sale of Tungsten Bank (2307J)
16 December 2015 - 7:40PM
UK Regulatory
TIDMTUNG
RNS Number : 2307J
Tungsten Corporation PLC
16 December 2015
THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS NOT FOR
RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN
WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, CANADA,
AUSTRALIA, NEW ZEALAND, JAPAN, THE REPUBLIC OF IRELAND OR THE
REPUBLIC OF SOUTH AFRICA OR ANY JURISDICTION IN WHICH THE SAME
WOULD BE UNLAWFUL
TUNGSTEN CORPORATION PLC
("Tungsten", the "Company" or "Group")
TUNGSTEN AGREES SALE OF TUNGSTEN BANK
16 December 2015
Tungsten Corporation plc (LSE: TUNG), the global electronic
invoicing, analytics and financing company, today announces it has
reached an agreement for a sale of Tungsten Bank (the "Bank")
following the conclusion of a previously announced strategic
review, and subsequent to the exclusivity agreement announced with
our Interim Results earlier this morning, for approximately GBP30m
in cash.
The consideration represents net assets of GBP25.4m plus a
premium. Completion is expected within six to 12 months.
The change in control agreement comes as Tungsten's Board
concluded that operating a regulated deposit-taking banking license
is incompatible with the pursuit of profitable growth from the
foreseeable invoice financing opportunity. The development of its
invoice financing offering remains a key component of Tungsten's
strategy.
The transaction is subject to approval by the UK's Prudential
Regulatory Authority and the Financial Conduct Authority ("FCA").
This process is expected to take between six to 12 months, although
approval may be received sooner.
This announcement should be read in conjunction with the
disclosure today of Tungsten's interim financial report for the six
months ended 31 October 2015 for more details about Tungsten
Corporation's invoice financing strategy.
Enquiries
Tungsten Corporation plc
Richard Hurwitz, Chief Executive Officer
Juliana Wheeler, Head of Global Communications +44 20 7280 7713
(Media) +44 20 7280 7973
Panmure Gordon (Nominated Advisor)
Fred Walsh/Dugald J. Carlean +44 20 7886 2500
Canaccord Genuity Limited (Broker)
Simon Bridges/Emma Gabriel/Cameron
Duncan +44 20 7523 8000
Neustria Partners (Investors and Analysts)
Robert Bailhache/Nick Henderson/Charles
Gorman +44 20 3021 2580
About Tungsten Corporation plc
Tungsten Corporation (LSE: TUNG) aims to be the world's most
trusted business transaction network by using data intelligently to
strengthen the global supply chain.
Tungsten Network is a secure e-invoicing platform that brings
businesses and their suppliers closer together with unique
technology that revolutionises invoice processing, maximises
efficiency and improves cashflow management. The network also
provides users with real-time spend analysis through Tungsten
Analytics, and offers access to Tungsten Early Payment, a form of
alternative finance for businesses.
Tungsten serves 56% of the Fortune 500 and 67% of the FTSE 100.
It enables suppliers to submit tax compliant e-invoices in 47
countries, and last year processed transactions worth over $187bn
for organisations such as Alliance Data, Aviva, Cargill, Deutsche
Lufthansa, General Motors, GlaxoSmithKline, Henkel, IBM, Kellogg's
and the US Federal Government.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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(END) Dow Jones Newswires
December 16, 2015 03:40 ET (08:40 GMT)
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