Last checked at 14 Mar 2011 07:00
14 March 2011
AssetCo plc
Statement regarding Press Speculation
"AssetCo plc ("AssetCo" or "the Company") notes the recent press comment concerning a potential approach to the Company.On 3 March 2011, the Company announced a proposed placing of new shares, to raise £16 million ("the Placing"). The general meeting to approve the resolutions for the Placing to be completed is due to be held on Monday 21st March 2011.The AssetCo directors ("the Directors") confirm that they have received a preliminary approach from a third party which was subject to various conditions including due diligence. Talks with this party have been taking place intermittently over several months. At the outset of talks the board approved the establishment of a committee of independent directors to oversee the matter. The Independent Directors consider the current approach to be opportunistic and not in the interests of shareholders as the indicated price range included an offer at a discount to the current market price. As such, the Independent Directors confirm that no talks are being conducted with this or any other party on any possible offer for the Company. The Company remains wholly committed to ensuring the Placing is successfully completed and the Company is placed on a stronger financial footing.
To that end, the Company has today entered into a short-term loan facility of £1,450,000 with its principle banker which continues to give the Company its support. This will enable the Company to meet certain critical payments ahead of the Placing proceeds becoming available. It will be repaid from the proceeds of the Placing.
The announcement of the Placing has encouraged some creditors to accelerate payment arrangements to the extent that the trade creditor balance at the end of March will be lower than on a normalised basis although some key creditors will be required to remain on gradual repayment terms. In addition, the Company will need to use some of the proceeds to reduce the level of recourse debt on the Company's balance sheet and is in negotiations concerning a suitable level of ongoing working capital facility.
For further information please contact:
AssetCo plc +44 (0)20 7614 5917
Tim Wightman, Chairman
Arden Partners plc +44 (0)20 7614 5917
Richard Day
Adrian Trimmings
Cadogan PR +44 (0) 7771 713608
Alex Walters
Emma Wigan