Swiss flexible workspace provider IWG PLC is selling its Taiwanese operations to TKP Corp. and entered into an exclusive master franchise agreement for the country, marking its second strategic partnership with the Japanese meeting room rentals company.
IWG will divest its outstanding capital contributions in its Taiwanese subsidiaries, which consist of 14 flexible coworking properties. It would receive gross consideration of £22.7 million in cash, subject to cash, debt and working capital adjustments, with the proceeds going toward general corporate purposes.
Under the master franchise agreement, Tokyo-based TKP will have exclusive rights to use the HQ, Regus and Spaces brands in Taiwan and to continue managing centers under the IWG brands and operating platform.
The transaction is set to close in September, subject to approval by the Taiwanese Investment Commission of the Ministry of Economic Affairs.