18 Mar 2011 14:38
18 MARCH 2011
MBL GROUP PLC
("MBL" or "the Group")
Update following Morrisons contracts termination
Further to the announcement on Tuesday 15 March 2011, the board of MBL Group plc ("Board") would like to update shareholders on certain actions it will be taking over the next few weeks in order to respond to the termination of the Morrisons contracts and to manage an orderly conclusion to those contracts.
In particular, the main priority of the Board will be to quickly secure a payment plan from Morrisons for the considerable stock MBL holds on behalf of Morrisons. The Board will update shareholders on progress in this matter as soon as it is appropriate to do so.
In addition, the Board is now preparing a plan for the immediate downsizing of the operations of the Group, which, as previously announced, will unfortunately result in a significant number of job losses. Discussions with Morrisons and its new supplier continue regarding those employees who will be in scope for TUPE (Transfer of Undertakings (Protection of Employment) Regulations).
As part of this downsizing plan, the Board is also considering its options for MBL's investment in UExplore. As a result, the Board has entered into early stage discussions with the other shareholders of UExplore in respect of them acquiring MBL's 15% stake.
Lastly, given the reduction in the size of the Group going forward, the Board is reviewing its options in respect of the lease on the proposed new distribution centre at Lower Darwen.
END
Enquiries:
MBL Group PLC
Peter Cowgill Tel: 01772 455 000
Bishopgate Communications Tel: 0207 5623 350
Duncan McCormick, Deepali Schneider, Natalie Quinn
Brewin Dolphin Tel: 0845 213 4729
Mark Brady, Sean Wyndham-Quinn
KPMG Corporate Finance Tel: 0161 246 4548
Chris Belsham
Disclosure requirements of the Takeover Code (the "Code") Under Rule 8.3(a) of the Code, any person who is interested in 1% 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 (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London 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 Code, any person who is, or becomes, interested in 1% 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 (London 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 or 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.