Increased offer7 Jun 2013 15:56
Well done to all here - not me!
LONGRIVER PARTNERS
PRE-CONDITIONAL CASH OFFER OF 2,200 PENCE PER SHARE FOR SEVERN TRENT PLC ("SEVERN TRENT" OR THE "COMPANY")
Further to their announcement on 3 June 2013, Borealis Infrastructure Management Inc. ("Borealis"), Kuwait Investment Office ("KIO") and USS Limited ("USS") (together, "LongRiver" or the "Consortium") announce that they have today submitted to the board of directors of Severn Trent (the "Severn Trent Board") a pre-conditional cash offer, which they consider to be full and fair, for the entire issued and to be issued share capital of Severn Trent of 2,200 pence for each Severn Trent share (the "Pre-conditional Offer"). The Pre-conditional Offer is inclusive of the final dividend of 45.51 pence per Severn Trent share proposed by the Severn Trent Board on 30 May 2013.
The Pre-conditional Offer values Severn Trent's fully diluted share capital at approximately GBP5.3 billion and would provide Severn Trent shareholders with an opportunity to realise certain value in cash for their shares at a compelling price, which:
-- implies a premium of 41 per cent. to Severn Trent's Regulatory Capital Value ("RCV") of GBP7.4 billion as at 31 March 2013 using the fair market value of Severn Trent's debt;
-- implies a premium of 31 per cent. to Severn Trent's RCV of GBP7.4 billion as at 31 March 2013, using the book value of Severn Trent's debt;
-- represents a premium of 34 per cent. to the average closing price of a Severn Trent share for the six months to 13 May 2013 (the last dealing day prior to the announcement by Severn Trent that it had received an approach from the Consortium); and
-- represents a premium of 21 per cent. to the closing Severn Trent share price on 13 M
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