Fairpoint Group PLC
("Fairpoint" or the "Group")
Disposal of indirect subsidiary
Fairpoint Group plc (in administration) ('Group') announces that its indirect subsidiary, Simpson Millar LLP ('SM LLP'), has sold the entire issued share capital of its wholly owned subsidiary, Simpson Millar Financial Services Limited ('SMFS') to Dune Financial Holdings Limited ('Dune'). Dune is partly owned by James Mann, SMFS's managing director and its sole legal director.
SMFS is an independent financial adviser, providing FCA registered pensions and investment advice, often to beneficiaries of personal injury and clinical negligence claims. As at 31 December 2016, SMFS had gross assets of £584,000.
The consideration will consist of an initial cash payment of £270,911 together with deferred consideration payable, subject to certain conditions, in cash annually over a five year period and subject to a maximum payment of £250,000.
The disposal will enable SM LLP to focus on the provision of legal services and the proceeds of the sale will provide capital to be applied in the development and management of SM LLP.
The administrators of Group, having no nominated advisor to consult, have formed the view that the terms of the transaction are fair and reasonable as far as Group's shareholders are concerned.
For enquiries please contact
RSM Restructuring Advisory LLP
Gemma Moorhouse firstname.lastname@example.org
0113 285 5000