Hmv Group Regulatory News (HMV)

24 Apr 2006 09:27

Tim Waterstone24 April 2006 24 April 2006 LONDONUK Regulatory Announcement HMV Group plc ("HMV") Proposed Offer of up to £280m for the Waterstone's division NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM AUSTRALIA, CANADA,JAPAN OR THE UNITED STATES Statement on behalf of Tim Waterstone and Anthony Forbes Watson:- An indicative offer for Waterstone's of up to £280m (equivalent to approximately70p per HMV share) has been put to the Board of HMV Group plc on behalf ofprivate equity interests and a new company to be formed under the chairmanshipof Tim Waterstone and with Anthony Forbes Watson as chief executive. "Inprinciple" bank finance has also been obtained. This offer, which was first tabled in February, is subject inter alia to HMV notacquiring or offering to acquire Ottakar's plc and may be withdrawn in thateventuality. Tim Waterstone comments, "This is a very fully priced offer for a business whichfaces major challenges to recapture the market share and operating margin thathave been lost. Much of the upside that we hope to create in Waterstone's wouldbe passed to HMV shareholders under the terms of this offer. It would leave theremaining HMV retail business on an inappropriately low multiple which thestock-market should soon re-rate. In Anthony Forbes Watson, we have a first ratechief executive designate who would swiftly rebuild damaged relationships withthe publishing industry which would be vital to future success." Anthony Forbes Watson adds, "There is a tremendous opportunity to re-energise awonderful brand and to re-establish Waterstone's at the hub of the UK bookworld. We believe it would be a mistake for HMV to acquire Ottakar's.Recovery at Waterstone's is the priority and the acquisition of Ottakar's wouldpresent a perilous distraction from this objective, bringing the additional riskthat apparent synergies would not materialise. We are making this statementpublicly because a decision by the Board and shareholders of HMV istime-critical, and in order to avoid a false market developing in eithercompany's shares." - Ends - Enquiries:- Tim WaterstoneTel 020 7269 7273 - on 24/04/06Tel 020 7321 6421 - Thereafter Anthony Forbes WatsonTel 020 7269 7273 - on 24/04/06Tel 07770 382 060 - Thereafter Notes for Editors:- Tim Waterstone founded Waterstone's in 1982 after nine years with WH Smith, towhom it was sold in 1993. In 1998, it came into the ownership of HMV Group, ofwhich he was chairman from then until 2001. He founded Daisy & Tom in 1996 andacquired the Early Learning Centre in 2004. He is currently chairman of thecombined group (Chelsea Stores), which has approximately £200m in sales. Anthony Forbes Watson has a 29 year career in the publishing industry, in salesand marketing and general management roles. He was with Oxford University Pressand HarperCollins, and was then at Pearson for a total of fifteen years until2005, becoming chief executive of Penguin Group UK and one of four members ofPenguin's global board. He is a former President of the Publishers'Association. This information is provided by RNS The company news service from the London Stock Exchange