CPPGroup trims headline price for sale of India subsidiary

(Sharecast News) - CPPGroup announced on Monday that it has agreed revised terms for the sale of its Indian subsidiary, trimming the headline price as it moved closer to completing the disposal. The AIM-traded insurance services group said it had signed an amended and restated sale and purchase agreement with the buyers of CPP India, cutting the total consideration to the rupee equivalent of $20m (£14.5m) from the $21m originally agreed.

Of that, $15m would be paid on completion, down from $15.8m, with the remaining $5m to be paid in two equal instalments of $2.5m each six and 12 months after completion, contingent on performance targets being met.

CPP India would also be required to have a minimum cash balance of $8m at completion, up from $7m previously agreed.

CPPGroup said all conditions precedent to the transaction had now been satisfied, and that completion was expected within the next five business days, subject to final share transfer formalities in India.

At 1126 BST, shares in CPPGroup were up 4.3% at 140.8p.

Reporting by Josh White for Sharecast.com.