Tavistock Investments PLC (AIM:TAVI) has announced plans to sell two of its subsidiary businesses to Saltus Partnership Holdings for up to £37.75 million.
Being sold are Tavistock Partners and Tavistock Estate Planning Services. The deal includes an initial payment of £10.97 million, with up to £15.75 million in deferred payments tied to future performance. Additionally, £11.03 million will be used to settle internal debts between the companies.
This sale represents a significant premium, with the price being 211% higher than Tavistock’s market value at the close of the previous trading day.
The transaction is a major shift for Tavistock and requires shareholder approval under AIM regulations, the rules that govern companies listed on London’s Alternative Investment Market.
After the sale, Tavistock will remain an active operating company after the deal is completed.
The proceeds from the sale will not be returned to shareholders directly. Instead, Tavistock plans to use the funds for day-to-day operations, potential future acquisitions, and possibly repurchasing some of its shares. The sale is still subject to several conditions, including regulatory approval from the Financial Conduct Authority.
"The disposal enables us to realise a substantial profit on our investment in the businesses involved, providing us with significant working and development capital," said chief executive Brian Raven.
"This will enable the continued reshaping of the group to optimise the balance between regulatory risk and commercial reward."