Helical Bar Regulatory News (HLCL)

1 Aug 2005 14:00

Helical Bar PLC01 August 2005 1 August 2005 Helical Bar plc ("Helical Bar" / "Company") Extraordinary General Meeting and proposed sub-division of Existing Ordinary Shares Helical Bar announces today that an Extraordinary General Meeting of the Companyis to be held at the registered office of Helical Bar, 11/15 Farm Street, LondonW1J 5RS, at 11.00 a.m. on 31 August 2005 to approve a sub-division of theCompany's ordinary share capital. Reason for the Share Split In recent years, the price of the Company's ordinary shares has risen to thepoint where they are now one of the most highly priced ordinary shares comparedwith comparator companies quoted on the London Stock Exchange. The closingprice on 28 July 2005 was £14.96. The Board believes that it is appropriate topropose the Share Split, i.e. a five-for-one sub-division of Existing OrdinaryShares. The Share Split should improve the liquidity and may reduce the bid/offer spread of the Company's ordinary shares. Financial effects of the Share Split If the proposed Share Split proceeds, it is expected that the price of each NewOrdinary Share will be approximately one-fifth of the price of an ExistingOrdinary Share. This will reflect the fact that shareholders will own fivetimes as many ordinary shares. Shareholders should note however that, subjectto market movements, the aggregate value of their shareholdings should remainthe same. The New Ordinary Shares will carry the same rights in all respects as theExisting Ordinary Shares, including voting rights and rights to participate individends of the Company, and will be transferable in the same manner as theExisting Ordinary Shares. Dealings Applications will be made for admission of the New Ordinary Shares to theOfficial List and to trading on the London Stock Exchange's market for listedsecurities. If the applications are accepted, it is expected that the last dayof dealings in the Existing Ordinary Shares will be 31 August 2005 and theeffective date for dealings to commence in New Ordinary Shares will be 1September 2005. The EGM will also consider a resolution to increase the Company's marketpurchase authority in light of the Share Split and recent exercises of options. Subject to the approval, where necessary, of the Company's auditors and theInland Revenue, appropriate adjustments will be made to outstanding rights inaccordance with the rules of the Company's employee share schemes to takeaccount of the Share Split and Optionholders will be contacted separately in duecourse. Recommendation The Directors believe that the Share Split is in the best interests of theCompany and its shareholders as a whole and unanimously recommend that theShareholders vote in favour of the Resolutions, as they intend to do in respectof their own beneficial holdings. Defined terms used in this announcement have the same meaning as given to themin the circular posted to the Company's shareholders today, a copy of which isavailable for inspection at the FSA's document viewing facility. For further information, please contact: Helical Bar plc Nigel McNair Scott Tel: 020 7629 0113 JP Morgan Cazenove Richard Cotton/Roger Clarke Tel: 020 7588 2828 Financial Dynamics Stephanie Highett/Dido Laurimore Tel: 020 7831 3113 This information is provided by RNS The company news service from the London Stock Exchange