Formation Group Buys Proactive Sports Management

15th Jul 2010 13:34

LONDON (Dow Jones)--Formation Group PLC (FRM.LN) said Thursday it purchased the entire issued share capital of Proactive Sports Management Limited for a nominal consideration. MAIN FACTS: -Proactive has one employee. -By way of background, on July 30, 2009, the Company announced that it had entered into an agreement to sell certain of its subsidiaries to a company ultimately controlled by a private equity partnership. -One of these subsidiary companies was Proactive, a sports representation business providing management services and career advice to professional sportsmen. -At that time, it was announced that the Company, through Proactive, had entered into legal proceedings against several parties who had not fulfilled contractual obligations. -As part of the disposal of Proactive it was agreed that Formation would receive 75% of the aggregate net settlement of all sums which may become due in relation to such legal proceedings. -As a result of the acquisition, Formation holds the conduct of this litigation, and, through Proactive, the full costing responsibility for it, and will receive 86.5% of any financial awards made in respect of it. -Acquiring the total issued share capital and legal title to Proactive is a logical step for the Company. -Shares at 1233 GMT unchanged at 1.75 pence. By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 15, 2010 08:34 ET (12:34 GMT)