The Regus Group, the worldÂ's largest provider of serviced offices, today announced the sale of a 58.0% stake in its profitable UK business to Rex 2002 Limited, a new company established by the Alchemy Investment Plan, for an estimated maximum consideration of Â£ 57 million.
Announcing the sale, Regus Group Chief Executive Mark Dixon commented: 'This sale is part of RegusÂ's plan to improve the long-term financial strength of the Regus Group. In Alchemy Partners, our UK business has found a partner who understands the service-driven nature of our business and is committed to our vision for the Regus Group in the UK.
This sale of a stake in the GroupÂ's profitable UK business will bring much needed funds into the Regus Group and allow us to continue the process of reorganisation required to bring the Regus Group back to profitability'.
Comprising 92 business centres across Britain, the UK business generated Â£129.4 million in revenue and Â£13.6 million in operating profit during the first nine months of 2002. It employs 556 people and serves approximately 20,000 customers from 4,500 businesses.
Under the agreement with Rex 2002 Limited, the UK business will continue to operate under the Regus Group brand and there will be no effect on the delivery of services to customers. Furthermore, this sale will have no impact on the Regus GroupÂ's global strategy or its commitment to its international operations in 52 countries.
The sale is not conditional on shareholder approval.