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PCG Entertainment soars as Centre Point share overhang starts to be cleared

PCG said Beaufort Securities, the company's broker, is selling around 402.589mln ordinary shares in the company on behalf of the CPDC purchasers.
Centre Point Development
PCG said it expects to receive net proceeds of approximately £0.3mln from the share sales

The biggest market gainer today was online media and entertainment company, PCG Entertainment Plc (LON:PCGE) which soared over 30% higher after it said the disposal of shares from the sale of Centre Point Development Corp. (CPDC) has commenced.

PCG said Beaufort Securities, the company's broker, is selling around 402.589mln ordinary shares in the company on behalf of the CPDC purchasers, equivalent to 30.06% of the AIM-listed firm’s share capital - a slightly higher number than originally anticipated.

The group said 302mln of the shares - equivalent to 22.55% of the share capital - have now been sold as part of this process, to multiple investors, none of which now hold notifiable stakes in the company.

PCG said it expects to receive net proceeds of approximately £0.3mln from the share sales.

Nick Bryant, PCG’s CEO, said: "This draws a line under the CPDC dispute.  It provides the Company with further working capital, enabling us to focus on our core business and exploit the opportunities we have created over the last few months.

“I look forward to updating the market on these opportunities in due course."

The Asia-Pacific company revealed in had opted to sell  the CPDC subsidiary on January 11 after a dispute between the unit’s vendors  and its major supplier.

The company sold CPDC to a consortium of investors, some of whom are existing shareholders of PCG, while others are thee previous owners of the company.

PCG purchased CPDC in August 2015, shelling out 114.8mln shares plus US$410,000.

In late afternoon trading today, PCG shares were up 34% at 0.155p, having dropped by around 10% on the disposal news in January.

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