MOSB.L Regulatory News (MOSB)

25 Feb 2008 12:01

Moss Bros Group PLC25 February 2008 Moss Bros Group Plc ("the Company")Statement - 25 February 2008 Approach by Baugur Group hf ("Baugur") Further to the announcement made on 10 December 2007 by Baugur Group hf("Baugur"), the Company confirms that it has now received an indicative offer incash at 42p per share from a new company to be formed by Baugur and certaininvestment partners ("Newco"). The Company has granted Newco due diligenceaccess and will update the market in due course as appropriate. Mr Mark Bernstein, who is a Director of the Company, dissented from thisdecision. The Company confirms this announcement has been made with the consent of Newco,however, there can be no certainty that an offer will be made for the Company. Trading update Retail LFL sales were flat against last year for the 52-week period; total salesfor the same period were down 3.2% as a result of planned store closures. Theprofit before non-recurring items for the 52 weeks ended 2008 will be lower thanmanagement's previous expectations. Cash at the year-end will not be materially lower than last year (2007- £16.6m)and average cash balances during the year were in line with last year (2006/07 -£7.6m). Cash remains a key management focus in the current market conditions.The stock position is robust; old stock is significantly lower than last yearand the age profile of stock across all fascias is now close to its optimumlevel, which strengthens the position of the business for trading in the currentyear. The Company has a strong balance sheet and is well placed to take advantage ofopportunities that may present themselves in the current environment. Reorganisation The business continues to undertake an internal reorganisation, which startedlast year to improve efficiency and reduce costs in view of the ongoingdifficulties in the retail sector. This reorganisation will result in theconsolidation of certain functional roles and activities, which were previouslyduplicated across the two areas of our mainstream and fashion fascia. It ishoped that the number of any redundancies are kept to a minimum by putting ahold on recruitment rather than by reducing existing staff numbers. Dealing Disclosure Requirements Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if anyperson is, or becomes, "interested" (directly or indirectly) in 1% or more ofany class of "relevant securities" of Moss Bros, all "dealings" in any "relevantsecurities" of that company (including by means of an option in respect of, or aderivative referenced to, any such "relevant securities") must be publiclydisclosed by no later than 3.30 pm (London time) on the London business dayfollowing the date of the relevant transaction. This requirement will continueuntil the date on which the offer becomes, or is declared, unconditional as toacceptances, lapses or is otherwise withdrawn or on which the "offer period"otherwise ends. If two or more persons act together pursuant to an agreement orunderstanding, whether formal or informal, to acquire an "interest" in "relevantsecurities" of Moss Bros, they will be deemed to be a single person for thepurpose of Rule 8.3. Under the provisions of Rule 8.1 of the Code, all"dealings" in "relevant securities" of Moss Bros by Newco or Moss Bros, or byany of their respective "associates", must be disclosed by no later than 12.00noon (London time) on the London business day following the date of the relevanttransaction. A disclosure table, giving details of the companies in whose "relevantsecurities" "dealings" should be disclosed, and the number of such securities inissue, can be found on the Takeover Panel's website at http://www.thetakeoverpanel.org.uk/new/. Contacts:Celia Gordon-Shute - Tulchan Communications 0207 353 4200Philip Mountford - Moss Bros Group Plc 0207 4477251 This information is provided by RNS The company news service from the London Stock Exchange