Search
Regulatory Story
Company IWG PLC
TIDM IWG
Headline Strategic Partnership Transaction in Switzerland
Released 07:17 04-Nov-2019
Number 1136S07

RNS Number : 1136S
IWG PLC
04 November 2019
 

Not for release, publication or distribution, in whole or in part, in or into any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdictions.

 

This announcement contains inside information in relation to IWG plc.

 

 

Strategic Partnership Transaction in Switzerland

 

IWG, the global operator of leading co-work and workspace brands, the J. Safra Group and the P. Peress Group are pleased to announce that they have entered into a strategic partnership with respect to IWG's workspace business in Switzerland.  IWG will divest of its interests in this market to an entity that is jointly owned by the J. Safra Group and the P. Peress Group (the "Purchaser") and will enter into an exclusive master franchise agreement with the Purchaser. This transaction follows similar deals completed earlier this year between IWG and TKP Corporation in respect of the divestment of IWG's businesses in Japan and Taiwan and the related franchise agreements.  

 

The J. Safra Group, with total assets under management of over USD 249 billion and aggregate stockholders' equity of USD 18.9 billion, is controlled by the Joseph Safra family. The J. Safra Group consists of privately owned banks under the Safra name and investment holdings in asset based business sectors such as real estate and agribusiness.  The P. Peress Group controlled by the Peress family has global investment holdings and interests in commercial, residential, operational and lifestyle related real estate.

 

IWG and the Purchaser have entered into definitive sale and purchase agreements for the entire issued share capital of IWG's subsidiaries in Switzerland, which had 38 flexible co-working locations as at 30 September 2019. IWG will receive gross consideration of CHF120 million payable in cash at completion, subject to completion accounts adjustments for cash, debt and working capital. Completion is expected to occur at the end of November 2019.

 

IWG and the Purchaser have also entered into a long-term master franchise agreement which provides the Purchaser with exclusive rights to the use of IWG's brands in Switzerland. The Purchaser will continue to operate the existing centres under IWG's brands and operating platform and has committed to a development plan which will add significantly to IWG's centre network in that country. IWG will provide on-going services and support to the Purchaser, including access to IWG's brand portfolio, global network, leading international sales and marketing platform and best in class operational infrastructure and technology in return for an on-going service fee linked to system-wide revenues in the Franchised Territories.

 

Mark Dixon, CEO of IWG said:

"We are delighted to have entered into this strategic partnership with the J. Safra Group and the P. Peress Group. Both groups are seasoned real estate investors with deep knowledge of our markets, and we are entirely confident they will augment the continued growth of IWG and its brands. This transaction builds on the successful completion of similar deals in Japan and Taiwan earlier this year and further demonstrates the continued interest from third parties wanting to operate IWG's brands across a wide range of geographies." 

 

Philippe Peress, on behalf of the aquiring Shareholders said:

"We are delighted to partner with the IWG team. IWG are the leading global co - working operator with a strong position of leadership in Switzerland.  With the support of the management team, valued employees, and thanks to our expertise and deep network in Switzerland we look forward to expanding this presence in the coming years."

 

 

 

 

The person responsible for arranging the release of this announcement on behalf of IWG is Tim Regan, Company Secretary.

 

Enquiries:

 

IWG plc

Tim Regan, Company Secretary
Wayne Gerry, Group Investor Relations Director

 

+41 (0)41 723 2353

Brunswick Group LLP (for IWG plc)

Nick Cosgrove

Oli Sherwood

+44 (0)20 7404 5959

 

KekstCNC (for the Purchaser)

Mark Semer

Robert Siegfried

 

 

+1 917 439 3507/mark.semer@kekstcnc.com

+1 212 521 4832/robert.siegfried@kekstcnc.com

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
DISQZLBBKFFLFBB
London Stock Exchange plc is not responsible for and does not check content on this Website. Website users are responsible for checking content. Any news item (including any prospectus) which is addressed solely to the persons and countries specified therein should not be relied upon other than by such persons and/or outside the specified countries. Terms and conditions, including restrictions on use and distribution apply.