Listed financial services firm First Capital Group has severed ties with Explorer Group shareholder John Aldersley after terminating a share agreement between both parties.
After vigorously pursuing Aldersley for his 60 per cent interest in the Explorer Group since June this year, the Queensland-based First Capital announced late last week it had decided to terminate the share sale and purchase deed.
As part of the termination, First Capital will receive back $800,000 of the $1 million deposit paid as part of the transaction.
The termination of the agreement also negates the need for First Capital to issue 5.2 million First Capital shares to Aldersley, which at close of trade on Wednesday November 7 was valued at $260,000.
The turnabout on the Explorer Group agreement comes just months after First Capital signed a $3 million deal with Rockstead Capital Private (Rockstead).
“We are very pleased to have reached an agreement to terminate the share sale agreement with Aldersley on terms satisfactory to us. This will mean First Capital no longer has any relationship with Explorer Group having recently sold our 40 per cent shareholding,” First Capital acting managing director Tom Wallace said.
“The termination of this transaction on our terms and the recent convertible note agreement with Rockstead puts First Capital in a very good position to move the business forward.”
“The last few months have seen a management team restructure and a refocus of the company with support from the Rockstead group. We are now concentrating on building our asset management, structured finance and product development capabilities,” he said.
The share tussle between First Capital and Aldersley began on June 21 this year when Aldersley purported to terminate his agreement to sell shares to First Capital and to retain the deposit First Capital had paid. First Capital rejected the purported termination.
First Capital attempted to end the tussle in September by selling off its 30 per cent interest in Explorer Group to Ascalon Capital Managers (Ascalon). At the time Aldersley was said to be considering selling part of his interest in the company to Ascalon.
Aldersley was not available for comment.
First Capital recorded a net loss of nearly $13 million for the 2006/07 year.
