Last checked at 9 Aug 2010 14:24
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE to do so would constitute a violation of the relevant laws of that jurisdiction.
For immediate release - 9 August 2010
RECOMMENDED ACQUISITION
of
Sovereign Reversions plc
by
Grainger Equity Release Limited
(a wholly owned subsidiary of Grainger plc)
COMPLETION OF ACQUISITION
The boards of Grainger plc ("Grainger") and Sovereign Reversions plc ("Sovereign Reversions") are pleased to announce that the Scheme to implement the recommended acquisition of Sovereign Reversions has become Effective and that Grainger Equity Release Limited now owns the entire issued share capital of Sovereign Reversions.
Admission to trading of Sovereign Reversions' Shares on AIM will be cancelled with effect from 8.00 a.m. (London time) on 10 August 2010.
Despatch of cheques or settlement through CREST (as appropriate) in respect of the consideration will take place no later than 24 August 2010.
Capitalised terms used in this announcement shall have the meanings given to them in the Scheme Document posted to Sovereign Reversions Shareholders, dated 17 June 2010.
Commenting, Andrew Cunningham, Chief Executive of Grainger, said:
"The completion of the acquisition of Sovereign Reversions ensures that the enlarged Group's position as one of the UK's leading equity release distributors and providers is significantly strengthened. In addition, both our existing and new customers and shareholders will benefit from the resulting economies of scale, an enhanced ability to access sources of finance and a widening of distribution and marketing capabilities.
"We look forward to working with the Sovereign team to consolidate further our industry position and take advantage of the excellent growth prospects of the equity release market."
For further information please contact:
| Grainger plc | Tel: 020 7795 4700 |
| Andrew Cunningham, Chief Executive | |
| Peter Couch, Chief Operating Officer | |
| Dave Butler, Director, Corporate Affairs
| |
| J.P. Morgan Cazenove, Financial Adviser to Grainger | Tel: 020 7588 2828 |
| Robert Fowlds | |
| Bronson Albery Edouard Asselin
| |
| Financial Dynamics, Financial PR to Grainger | Tel: 020 7831 3113 |
| Stephanie Highett | |
| Dido Laurimore | |
| Rachel Drysdale
| |
| Sovereign Reversions plc | Tel: 01234 356300 |
| Graeme Marshall, Chief Executive
| |
| Charles Stanley Securities, Joint Rule 3 Adviser and broker to Sovereign Reversions | Tel: 020 7149 6000 |
| Dugald Carlean
| |
| Fairfax I.S. PLC, Joint Rule 3 Adviser to Sovereign Reversions | Tel: 020 7598 5368 |
| David Floyd | |
| Andrew Cox |
Charles Stanley Securities, a division of Charles Stanley & Co Limited is acting exclusively for Sovereign Reversions and no one else in connection with the possible Transaction and will not be responsible to anyone other than Sovereign Reversions for providing the protections afforded to customers of Charles Stanley Securities or for providing advice in relation to the possible Transaction or any other matter referred to herein.
Fairfax I.S. PLC is acting exclusively for Sovereign Reversions and no one else in connection with the possible Transaction and will not be responsible to anyone other than Sovereign Reversions for providing the protections afforded to customers of Fairfax I.S. PLC or for providing advice in relation to the possible Transaction or any other matter referred to herein.
J.P. Morgan Cazenove is a marketing name for the UK investment banking business of J.P. Morgan plc and its associated companies. J.P. Morgan Cazenove is acting exclusively for Grainger and no one else in connection with the possible Transaction and will not be responsible to anyone other than Grainger for providing the protections afforded to customers of J.P. Morgan Cazenove or for providing advice in relation to the possible Transaction or any other matter referred to herein.
Brewin Dolphin Investment Banking acts as joint broker to Grainger.
Dealing disclosure requirements
Under Rule 8.3(a) of the City Code, any person who is interested in 1 per cent. or more of any class of relevant securities of an offeree company or of any paper offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any paper offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any paper offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (UK time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (UK time) on the 10th business day following the announcement in which any paper offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a paper offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.
Under Rule 8.3(b) of the City Code, any person who is, or becomes, interested in 1 per cent. or more of any class of relevant securities of the offeree company or of any paper offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any paper offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any paper offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (UK time) on the business day following the date of the relevant dealing.
If two or more persons act together pursuant to an agreement or understanding, whether formal of informal, to acquire or control an interest in relevant securities of an offeree company or a paper offeror, they will be deemed to be a single person for the purpose of Rule 8.3.
Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).
Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. If you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure, you should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129.