Leeds Group agrees to terminate KMR joint venture
Leeds Group
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16:44 30/09/24
Leeds Group has reached an agreement to terminate the joint venture investment in Stoff-Ideen-KMR (KMR) between its German subsidiary, Hemmers/Itex Textil Import Export, and a Mr Maat.
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The AIM-traded firm said KMR would acquire Maat's 50% shareholding in KMR for a total consideration of €0.5m (£0.44m), to be paid €0.25m in cash, and the balance being three shops at a value of €0.25m.
It said Maat would resign as a director of KMR with immediate effect, with no further costs to be incurred.
Hemmers would retain its shareholding in KMR, and become the sole owner, with the transaction completing on 5 July 2018.
Leeds described KMR as a retailer of fabric and haberdashery, operating shops located throughout Germany.
Hemmers’ original investment of 50% in KMR was made on 31 December 2014, and the investment was included in Hemmers accounts 31 May last year at a value of £0.83m.
KMR's sales revenue in the financial year ended 31 May 2017 was €10.85m, and its pre-tax profit was €0.11m.
The net assets of KMR amounted to €2.17m.
“The directors of Leeds Group believe that this is in the best interest of KMR and the group by improving synergies and growth going forward,” the Leeds board explained in its short statement.