Coats Regulatory News (COA)

6 Feb 2008 07:00

6 February 2008 Newbury Racecourse PLC ("Newbury" or the "Company") Response to GPG's failed takeover announcement

Guinness Peat Group plc ("GPG") today announced that it had failed in its unwelcome takeover bid for Newbury Racecourse PLC ("Offer") as it had received only 5.5 per cent. acceptances as at 1.00 p.m. today, being the final closing date for its Offer. The Independent Directors of Newbury would therefore like to thank Shareholders for their continued support.

Last Friday, 1 February, four days before the close of its Offer, GPG requested an Extraordinary General Meeting ("EGM") of the Company with the intention of removing three of your most experienced Independent Non-Executive Directors and replacing them with an additional GPG representative. Each of these Non-Executive Directors, Sir David Sieff, Nicholas Jones and Brian Stewart-Brown is on the Board to protect the interests of minority Shareholders and their removal would not be in your best interests. We will be writing to you in due course with details of the EGM.

Following the failure of its Offer, GPG is not allowed, under the Takeover Code, to make another bid for the Company for a period of 12 months. However, having had its Offer for Newbury firmly rejected, GPG is again trying to gain control of your Board and your Company `by the back door'. GPG's unwelcome Offer and subsequent call for an EGM are a major distraction to your Board's day-to-day work of operating the Company. Furthermore, GPG's actions are imposing significant additional costs on the Company.

Your Board has a clear strategy to continue the transformation of Newbury Racecourse into a leisure, entertainment and events business with the racecourse as its core asset. This strategy includes the development of the Company's surplus land assets and ensures the long term future of quality racing at Newbury.