PCG Entertainment agrees to sale of Center Point

11th Jan 2017 13:46

(ShareCast News) - AIM-listed online media and entertainment group PCG Entertainment has agreed to the sale of its wholly-owned subsidiary Center Point Development Corp to a consortium of existing shareholders in the company in exchange for a 30% interest in PCG.PCG bought CPDC in August 2015 for just over 114.8m PCG shares but since then issues have arisen relating to a dispute between the vendors of CPDC and its major supplier, leading to a drop in revenue.The consideration for CPDC will be the proceeds of the sale of 399.8m ordinary shares owned by the purchasers, to be sold by the company's broker Beaufort Securities, with the net proceeds after transaction costs to be paid to PCG. Chairman Richard Poulmen said: "These negotiations have been long and complex, and have meant the board has been unable to provide clarity to shareholders on the position with CPDC until now; we are pleased to be able to disclose this previously inside information. We look for forward to building the other business streams within the company."The sale of CPDC requires shareholder approval at a general meeting as it constitutes a fundamental change of business.At 1400 GMT, PCG shares were up 0.6% to 0.18p.