6 December, 2006 - 16:26 By Staff Reporter

Luminar to sell entertainment division

Luminar announced it is to sell its entertainment division to Prestbury Holdings for £76.8m in cash and £19m in loan notes.The division comprises 19 freehold properties, one long leasehold property, and a 20 per cent stake in NewCo, a company set up to facilitate the spin-off.

The firm said the transaction will reduce Luminar’s cost base by around £3m. Luminar said it will retain an interest in the businesses being sold even after the sale by virtue of a 49 per cent shareholding in NewCo and a management holding of 31 per cent.

NewCo will be largely managed by Luminar’s existing management team and both Luminar and Prestbury will have board representation. Following the announcement, luminar’s shares increased 1.3 per cent to 688.5p.

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