27 Sep 2018 07:00
Equiniti Group plc
Incorporated in England and Wales
Registration number: 07090427
LEI: 213800TS721HGE2JIV94
ISIN: GB00BYWWHR75
27 September 2018
Equiniti Group plc
MyCSP contract extension and purchase of shareholding
Equiniti Group plc ("Equiniti"), the multinational specialist technology outsourcer providing non-discretionary payment and administration services, today announces the extension of the existing contract between MyCSP Limited ("MyCSP") and the Minister for the Cabinet Office for the provision of pension administration and related services until the end of December 2021.
MyCSP is a 51/24/25% joint venture partnership between Equiniti (via its wholly owned subsidiary Paymaster (1836) Limited ("Paymaster")), the Cabinet Office and MyCSP Trustee Company (an employee benefit trust).
At the same time as the contract extension, Equiniti has signed documentation to acquire the Cabinet Office's 24% stake in MyCSP for £8m, increasing the Equiniti stake from 51% to 75%. The employee benefit trust will retain its 25% stake in MyCSP, with all other elements of the joint venture partnership structure and service contracts continuing unchanged. The transaction is expected to be accretive to earnings. MyCSP has made a significant investment in technology and services for public sector pensions administration, and has the experience and scale to operate the largest and most complex of schemes.
Guy Wakeley, Equiniti's Chief Executive said: "We are delighted that the Cabinet Office has chosen to exercise the MyCSP contract extension and continue its partnership with Equiniti until December 2021. We are committed to further investment in the services and enhancing the customer experience."
Under the UK Listing Rules the Cabinet Office is treated as a related party of Equiniti by virtue of its shareholding in MyCSP being greater than 10%. This announcement is made in accordance with Listing Rule 11.1.10R (smaller related party transactions).
The transaction is expected to complete later today.
For further information please contact:
Analyst/Investor enquiries:
Equiniti Group plc +44 (0) 207 469 1800
Guy Wakeley, Chief Executive
John Stier, Chief Financial Officer
Frances Gibbons, Head of Investor Relations
Media enquiries:
Temple Bar Advisory
Alex Child-Villiers + 44 (0) 7795 425580
Will Barker + 44 (0) 7827 960151
Email: equiniti@templebaradvisory.com