BSGP made a recommended public offer for the company earlier this year and ultimately acquired 73.5 per cent of its shares. It stated in its offer document that one of its objectives, should its offer succeed, was to internalize the management of the company.
As part of the arrangement to terminate the existing management agreement entered into last week, GBP 544,000 (about EUR 600, 000) will be paid to RCP as management fees for services that have been provided by RCP but not yet paid for by the company. An additional GBP 106,000 will be paid as intellectual property rights for various materials.
Certain employees of Knight Frank LLP who are currently providing services to Rutley under the existing management agreement will be transferred to a newly incorporated, wholly-owned subsidiary of the company, Rutley European Property Management Limited. Knight Frank LLP will also be a preferred service supplier to the company in certain jurisdictions until 30 November 2011.
Knight Frank is active in Romania through the Advisers Knight Frank, a company headed by Hotariu Florescu and Monica Barbu.