LAM.L Regulatory News (LAM)

11 Oct 2006 07:01

Lamprell Plc11 October 2006 THIS ANNOUNCEMENT OR ANY COPY OF IT IS NOT FOR RELEASE, PUBLICATION ORDISTRIBUTION IN OR INTO THE UNITED STATES, THE UNITED ARAB EMIRATES OR ANY OTHER MEMBER STATE OF THE GULF COOPERATION COUNCIL (THE "GCC"), AUSTRALIA, CANADA,SOUTH AFRICA, IRELAND OR JAPAN OR TO A RESIDENT OF AUSTRALIA, CANADA, THE UNITED ARAB EMIRATES OR ANY OTHER MEMBER STATE OF THE GCC, SOUTH AFRICA, IRELAND OR JAPAN. This document is not a prospectus but an advertisement. Investors should notpurchase any transferable securities referred to in this announcement except on the basis of information in the AIM admission document to be issued today 11 October 2006 LAMPRELL PLC ANNOUNCES OFFER PRICE Lamprell plc (the "Company") and other members of its group ("Lamprell" or the "Group"), based in the United Arab Emirates ("UAE"), a prominent provider ofspecialised services to the offshore oil and gas industry, today announces thesuccessful pricing of an offering (the "Offer") of existing ordinary shares (the"Shares") to institutional investors and its intention to seek admission of itsentire share capital to trading on AIM, a market operated by London StockExchange plc ("Admission"). The Offer is conditional, inter alia, on Admission. Following a successful institutional investor roadshow, the offer price has beenset at 195 pence per Share (the "Offer Price"). JPMorgan Cazenove is acting as nominated adviser and broker to Lamprell and solebookrunner to the Offer. - The Offer consists of a placing to institutional investors of117,679,216 existing Shares which at the Offer Price represents a deal size of£229.5 million - Following the Offer, the Company's issued share capital will be 200million shares - Based on the Offer Price, the market capitalisation of the Companyimmediately following the Offer will be approximately £390 million - As demand for Lamprell's services continues to rise, the Directorsbelieve that a London market listing will provide the Group with the profileneeded to continue the expansion of its skills and capacity, to secure a morediversified ownership structure and to incentivise employees further Mr Peter Whitbread, Chief Executive Officer and Chairman of Lamprell, said: "I am delighted that the roadshow has been successful and I look forward towelcoming all our new shareholders. The specialised oil services market offersLamprell a number of opportunities for growth in the years ahead. With ouracknowledged expertise and strategic base in the UAE, I believe Lamprell is wellplaced to benefit from those opportunities. It should be noted that if Admission does not occur, all conditional dealingswill be of no effect and any share dealings will be at the sole risk of theparties concerned. For further information: Lamprell (+44 (0)20 7638 9571) Peter Whitbread, Chief Executive Officer and Chairman David Moran, Chief Operating Officer and Chief Financial Officer JPMorgan Cazenove (+44 (0)20 7588 2828) Nick Garrett, Managing Director Laurence Hollingworth, Managing Director Malcolm Moir, Managing Director Citigate Dewe Rogerson (+44 (0)20 7638 9571) UK Media enquiries: Martin Jackson / George Cazenove Dubai Media enquiries: David Westover Analyst enquiries: Kate Delahunty / Nina Soon http://www.lamprell.com NOTES TO EDITORs • Lamprell, based in the UAE, has played an increasingly prominentrole in the development of the offshore industry in the Arabian Gulf for over 30years, in later years providing specialised services to the offshore oil and gasindustry. • Lamprell's two primary facilities are in Port Khalid, in theEmirate of Sharjah, and in the Jebel Ali Free Zone, in the Emirate of Dubai,both of which are in the UAE • The principal markets in which Lamprell operates, and theprincipal services it provides, are: - Upgrade and refurbishment of offshore jackup rigs; - New build construction for the offshore oil and gas sector, includingFloating Production, Storage and Offloading systems and other offshore andonshore structures; and - Oilfield engineering services, including the upgrade andrefurbishment of land rigs. • Lamprell has grown strongly over the last three years, driven bybuoyant conditions in the oil and gas industry and the increase in capacity withthe opening of its facility in the Jebel Ali Free Zone in 2002. • Revenues have almost tripled from 2003 to 2005, increasing fromUS$70.4 million to US$205.0 million. In this period, operating profits have alsoincreased five-fold, resulting in profits available to shareholders increasingfrom US$5.6 million to US$28.7 million. • Steven Lamprell, aged 56, President, founded the business in1974 and took up residency in Dubai in the mid-1970s. Steven has presided overLamprell's emergence as an important player in providing services to theoffshore oil industry in the Arabian Gulf. He is selling a majority stake in thebusiness in the Offer. • The Company also has a very strong management team, including: - Peter Whitbread, aged 62, Chief Executive Officer and Chairman, joinedLamprell in 1992. Peter is a Chartered Quantity Surveyor and has over 35 yearsof experience in the oil and gas services sector. - David Moran, aged 44, Chief Operating Officer and Chief FinancialOfficer, joined Lamprell in 1992. David is responsible for the entireoperational, finance and administration activities of Lamprell. No offer or invitation to purchase shares is being made at this time. Any suchoffer or invitation will be made solely in or by reference to the AIM admissiondocument to be published today and any acquisition of shares in the Companyshould be made only on the basis of the information contained in the AIMadmission document. This announcement, for which the Company and its directors are solelyresponsible, has been approved by JPMorgan Cazenove solely for the purpose ofsection 21 of the Financial Services and Markets Act 2000. JPMorgan Cazenove,which is authorised and regulated in the United Kingdom by the FinancialServices Authority, is advising the Company and no-one else in connection withthe Offer and Admission and will not be responsible to any person other than theCompany for providing the protections afforded to its clients or for advisingany other person in relation to the Offer and Admission. The distribution ofthis announcement in certain jurisdictions may be restricted by law and personsinto whose possession this announcement comes should inform themselves about,and observe, any such restrictions. Any failure to comply with theserestrictions may constitute a violation of the securities laws of any suchjurisdiction. The information contained herein is not for publication or distribution,directly or indirectly, into the United States, the UAE or any other memberstate of the Gulf Cooperation Council ("GCC"), Canada, Australia, South Africa,Ireland or Japan. The material set forth herein is for informational purposesonly and does not contain or constitute an offer of securities for sale into theUnited States or the UAE (including in the Dubai International Financial Centre)or any other jurisdiction. The securities of the Company described herein havenot been and will not be registered under the United States Securities Act of1933 (the "Securities Act"), as amended, or the laws of any state, and may notbe offered or sold within the United States, except pursuant to an exemptionfrom, or in a transaction not subject to, the registration requirements of theSecurities Act and applicable state securities laws. There is no intention toregister any portion of the offering in the United States or to conduct a publicoffering of securities in the United States. The Shares have not been, and willnot be registered under the securities legislation of each member state of theGCC, Canada, the Commonwealth of Australia, the Republic of South Africa,Ireland or Japan. Accordingly, unless an exemption under relevant securitieslaws is applicable, the Shares may not be offered, sold or delivered, directlyor indirectly in or into, each member state of the GCC, Canada, Australia,South Africa, Ireland or Japan. Stabilisation/FSA This information is provided by RNS The company news service from the London Stock Exchange