StockMarketWire.com - CPPGroup has completed the sale of its 49% shareholding in Home3 Assistance to Mapfre Abraxas Software.

Home3 provides home emergency assistance in the UK and prior to the sale was a joint venture company between CPP Holdings and Mapfre. The consideration for the group's entire holding of share capital in Home3 was £275,000.

As part of its exit of the joint venture arrangement CPP agreed to invest a further £1,000,000 to absorb its share of the unrecognised losses in Home3, which will be reported as part of discontinued operations in the group's income statement for the year ending 31 December 2014.

CPP will make the net cash payment of £725,000 to Mapfre over a two year period. CPP will recognise a profit on disposal of approximately £275,000, less any associated disposal costs, as there are no relevant net assets recorded on the Group balance sheet at the date of the transaction. The loss after tax attributable to the group's investment in Home3 for the year to 31 December 2012 was £477,000 (H1 2013: £226,000).

Group chief executive Brent Escott said: "The sale of our shareholding in Home3 represents further progress in repositioning the business model to provide longer term stability for the group."


At 1:44pm: [LON:CPP] CPP Group PLC share price was +1.25p at 13.25p



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