£1.18m
0.000p
4.88p
DA Group PLC
10 October 2007
DA Group PLC
10 October 2007
DA Group plc
'DA Group' or the 'Company'
Statement re suspension and potential transaction
On 5th October, the Board announced that discussions regarding an invoice
discounting facility were continuing, and that discussions regarding a
potential transaction were also continuing, although there was no certainty of
an offer being made for the Company, or for its underlying business activities,
or of securing further investment into the Company.
DA Group has now entered into a non-binding heads of agreement for the sale of
its operating activities including its principal trading subsidiary for a cash
consideration of £500,000. It is anticipated that following settlement of
transaction costs, DA Group would retain net proceeds of approximately £200,000.
The Board has terminated discussions with regard to a potential offer for DA
Group plc, and accordingly the Company is no longer in an offer period.
The Board has now also received indications that the invoice discounting
facility is likely to be subject to conditions which the Board considers would
not be acceptable.
If the sale does not proceed and on the basis of current cash flow forecasts,
the Board believes that the Company will have insufficient funds to meet its
liabilities as they fall due by the end of October 2007.
DA Group has requested that the trading of its ordinary shares be suspended with
immediate effect pending resolution of the above.
A further update will be made as soon as it is appropriate to do so.
ENQUIRIES:
Mike Antliff, Paul McCaffrey, DA Group +44 (0) 141 582 0600
Lindsay Mair, Daniel Stewart & Company Plc +44 (0) 20 7776 6550
Tom Moriarty, Caroline Evans-Jones, ICIS +44 (0) 20 7651 8688
This information is provided by RNS
The company news service from the London Stock Exchange