New World Oil And Gas Regulatory News (NEW)

9 Oct 2008 09:01

NEWCOURT GROUP PLC ("NEWCOURT" OR THE "COMPANY") STATEMENT IN RELATION TO POSSIBLE OFFER The Board of Newcourt has been considering for some time how best to secure thefuture strategic development of the Group in light of the worsening economicoutlook and the ongoing deterioration in the global financial markets. TheDirectors believe that the decline in the Company's share price over the lasttwelve months, in line with those of many other companies with smallcapitalisations, shows that there is little appetite among investors for smallerquoted stocks and that the benefits normally associated with a listing (such asa liquid market for investors, easier access to capital, the use of shares asconsideration for acquisitions and a raised investment profile) are no longeravailable to the Company. As a result, the Company will now be faced withcarrying the additional costs associated with a listing without any of thebenefits. In light of these deliberations, Ted O'Neill, Chief Executive, Phil Sykes,Non-executive Director and Hugh O'Neill, Executive Director, the originalfounders of Newcourt ("the Founder Directors") have sought and receivedpermission from the board to explore the possibility of securing third partyequity and debt funding with a view to making an offer for the Group. It isintended that certain other members of the senior management team (includingNewcourt's Chairman, James Osborne, who was a founding investor in SigmarRecruitment prior to its acquisition by Newcourt) will also participate in suchan offer if, and when, it is made. In their preliminary discussion with the board, the Founder Directors haveindicated that there can be no certainty in the prevailing financial marketconditions that the necessary finance to make an offer will be available onsatisfactory terms. The Founder Directors have also indicated that any price that may be put forwardwill reflect the challenging trading environment and prospects now facing allthe Group's businesses as outlined in the interim statement of 2nd September2008 and, in particular, the need to secure the significant equity and debtfunding necessary to complete the pipeline of projects in Newcourt's StudentAccommodation business. An independent sub-committee of the Board will be formed to consider anyproposal that may be made. A further announcement will be made when appropriate. Enquiries: \* T Davy Corporate Finance(Rule 3 Advisor to Newcourt)Ivan Murphy, Director +353 (0) 1 679 6363 Mark Kenny/Jonathan Neilan +353 (0) 1 631 5500\* T A holder of 1% or more of the shares of Newcourt may have disclosure obligationsunder Rule 8.3 of the Irish Takeover Panel Act. The Directors of Newcourt accept responsibility for the information contained inthis announcement. To the best of their knowledge and belief (having taken allreasonable care to ensure that such is the case), the information contained inthis announcement for which they accept responsibility is in accordance with thefacts and does not omit anything likely to affect the import of suchinformation. Copyright Business Wire 2008