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Financial News

Apr 2012 Financial News

PHL - Media Release

Apr 11, 2012

NOTICE TO SHAREHOLDERS OF PRESTIGE HOLDINGS LIMITED REGARDING THE SALE OF THE INVESTMENT IN THE DOMINICAN REPUBLIC, AND THE EXIT FROM THAT MARKET

April 12, 2012

RE KENTUCKY FOODS GROUP LIMITED (KFGL) INVESTMENT: Prestige Holdings Limited (Prestige) hereby advises that in accordance with its earlier press release of December 3, 2011, Prestige has entered into a Stock Purchase Agreement dated April 10, 2012, for the sale of the fifty percent (50%) shareholding and ownership interest in KFGL owned by Prestige to Prestige’s Joint Venture Partner, Montlac Corp. (Montlac).

The financial effects of that transaction were anticipated and accounted for in Prestige’s recently published financial statements for the year ended 30 November 2011, and no further losses or charges are expected from this investment. The Stock Purchase Agreement also indemnifies Prestige against any claims brought against Prestige and relating to acts or omissions of Montlac prior to the closing of the stock sale.

Subsequent to the closing of the sale, set for April 30, 2012, Prestige, with the approval of the relevant Franchisors, shall transfer all of its rights and obligations under the Franchise Agreements for the twelve (12) KFC restaurants and two (2) T.G.I. Friday’s restaurants in the Dominican Republic to Montlac. As a result, Prestige shall no longer have any involvement in the KFC business and the T.G.I. Friday’s business in the Dominican Republic.

The Prestige Directors are satisfied that the sale of the KFGL investment, upon
the terms of the Stock Purchase Agreement, is in the best interests of Prestige
and its Shareholders.

Joseph P. Esau, Chairman.


Source:
The Trinidad and Tobago Stock Exchange Limited
Wednesday April 11, 2012