LONDON (dpa-AFX) - IWG plc (RGU.L), an operator of co-work and workspace companies, announced Monday that it has entered into a strategic partnership with TKP Corporation in Japan. IWG will divest its Japanese operations to TKP and the parties have agreed an exclusive master franchise agreement for the country.
TKP, which is listed on the Tokyo Stock Exchange, is a provider of conference rooms and banquet halls for rental in Japan, operating from 249 locations across the country.
IWG and TKP have entered into a definitive sale and purchase agreement in relation to 100% of the shares of Regus Japan Holdings K.K., which holds IWG's Japanese operations comprising 130 flexible co-work centres as at 31 December 2018.
IWG will receive gross consideration of 320 million pounds payable in cash at completion subject to completion accounts adjustments for cash, debt and working capital.
Completion is expected to occur in May 2019 and is conditional only on Japanese anti-trust clearance.
IWG and TKP have also entered into a long term master franchise agreement which provides TKP with exclusive rights to the use of the Regus, Spaces and OpenOffice brands in Japan.
TKP will continue to operate the Japanese centres under IWG's brands and operating platform, and has committed to a development plan which will add significantly to IWG's centre network in Japan.
Proceeds from the divestment will be used for the Group's general corporate purposes.
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