- IWG said it would sell its Japanese operations to TKP Corporation for £320m as part of an agreement that would also allow the latter exclusive rights to use IWG's Regus, Spaces and OpenOffice brands in Japan.

IWG and TKP entered into a definitive sale and purchase agreement of Regus Japan Holdings K.K., which held IWG's Japanese operations comprising 130 flexible co-work centres as at 31 December 2018.

IWG would receive gross consideration of £320m payable in cash at completion subject to completion accounts adjustments for cash, debt and working capital. Completion was expected to occur in May 2019 and conditional only on Japanese anti-trust clearance, the company said.

IWG and TKP also agreed an exclusive master franchise agreement for the country, which provided TKP with exclusive rights to the use of the Regus, Spaces and OpenOffice brands in Japan.

Under the master franchise agreement, IWG (as master franchisor) had committed to provide on-going services and support to TKP (as master franchisee) 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 platform fee linked to system-wide revenues in Japan,' the company said.

The divested business contributed £94.4m to group revenue and generated earnings (EBITDA) of £20.6m in 2018. The total gross asset value of the divested business as at 31 December 2018 was £98.3m.

'The transaction realises an attractive valuation for IWG's shareholders and re-affirms our strategy of capital efficient growth in IWG's global network with an increased emphasis on partnerships,' said Mark Dixon, CEO of IWG.

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