3 May 2018 07:00
3 May 2018
Proposed Return of Capital and Cancellation of Admission to Trading
The board of directors of Gloo Networks plc ("Gloo" or the "Company") announces that, following a comprehensive review, it has concluded that it is in the best interests of shareholders to return Gloo's remaining capital by means of a voluntary liquidation of the Company.
Arnaud de Puyfontaine, non-executive chairman of Gloo, said: "Since its inception, Gloo has adopted a disciplined and rigorous approach to assessing acquisition opportunities, which led to a review of more than 90 potential assets and in-depth discussions with 11 target companies.
"As part of that process, management engaged with trusted brands where it saw an opportunity to create shareholder value by acquiring strong operating assets that combined predictable revenues and digital growth potential.
"The Board has conducted a strategic review of the current pipeline of potential acquisitions within our target sectors that demonstrate the requisite financial characteristics. Given the likely timeframe to a possible acquisition, the Board concluded that shareholders would be best served through the return of Gloo's remaining capital. I would like to thank CEO Rebecca Miskin and her management team for their tireless efforts to identify and acquire growth assets for Gloo. And I would like to thank shareholders for their support and patience as we explored such opportunities."
The Board's decision follows Gloo's announcement of 28 March 2018, when the Company said it was no longer considering a reverse takeover among the acquisition opportunities that it had reviewed.
It is anticipated that after expenses, including the costs of the planned liquidation, Gloo shareholders would receive no less than 47p per share. A circular convening a General Meeting to approve the appointment of a liquidator and the cancellation of the Company's admission to trading on the AIM Market (the "de-listing") is expected to be distributed by the board on Friday 11 May 2018. The de-listing will occur no earlier than 5 June 2018.
James Corsellis, a Managing Partner at Marwyn Investment Management and a Director of Gloo, said: "As Gloo's largest shareholder and investment partner, we are enormously grateful for the financial discipline and dedication of Rebecca and the entire Gloo team over the last three years assessing such a wide range of potential investment opportunities. We wish them all the best for the future."
Gloo's directors intend to remain in office until the General Meeting to facilitate the orderly execution of the liquidation.
Enquiries:
Gloo Networks plc
Rebecca Miskin, Chief Executive Officer (through Teneo Blue Rubicon)
Teneo Blue Rubicon (Financial communications adviser)
Tel: +44 20 7240 2486
Paul Durman/ Shona Buchanan
Liberum Capital Limited (Nominated Adviser and Joint Broker)
Tel: +44 20 3100 2000
Neil Elliot
Numis Securities Limited (Joint Broker)
Tel: +44 20 7260 1000
Nick Westlake
Michael Wharton
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
Rebecca Miskin is Chief Executive Officer of Gloo Networks plc, which has its offices at 20 Buckingham Street, London WC2N 6EF and has the LEI 21380078XGCMNMEIU311.