ARC Funds divests non-core assets for $350,000

ARC Funds (ASX:ARC) has entered into non-binding term sheets for the strategic disposal of two non-core assets, Merewether Capital Management and ARC Fund Operations.

The combined transactions are set to generate a total consideration of $350,000, representing a focused effort by the board to streamline the company’s portfolio and realise value from secondary interests.

The first component of the divestment involves the sale of ARC’s 72% stake in Merewether Capital Management, consisting of 771,880 fully paid ordinary shares.

The interest is being offloaded for $100,000 in cash, structured as an initial $50,000 payment upon the signing of binding agreements and a final $50,000 instalment at completion.

The deal is being conducted on a typical cash-free, debt-free basis, though it notably excludes employee entitlements.

The company is disposing of its interest in ARC Fund Operations for $250,000 cash.

The payment terms for this second transaction are more front-weighted, with $200,000 due on the execution of binding agreements and the remaining $50,000 payable upon completion.

Like the Merewether sale, this transaction is being undertaken on a debt-free basis with customary warranties in place.

Both disposals are subject to standard completion conditions and are expected to be finalised on or before May 1.