SAF.L Regulatory News (SAF)

13 Mar 2006 11:46

Safeland PLC13 March 2006 Press Announcement Safeland Plc 13 March 2006 Section 320 Circular The Board of Safeland plc (the "Company") announces the proposal for the Companyto enter into a Broker Agreement with Grafton Insurance Services Limited ("Grafton"), a company owned as to 50 per cent. by Leo Insurance Services plc ("Leo"). Leo was demerged from the Company in 2005 and was subsequently admittedto trading on the AIM Market of the London Stock Exchange plc. It is proposed that the Company becomes a client of Grafton, by appointing it asits insurance broker pursuant to the Broker Agreement. Under the BrokerAgreement, Grafton would have the duty (amongst other things) to seek insurancecover for the properties held by the Company and its subsidiaries (the "Group")on the best terms reasonably available and in any event on terms at least asgood as those currently enjoyed by the Group. Any commission which Grafton earnsfrom making these arrangements will be shared on an equal basis with Safeland. The Company's largest shareholder is Safeland Holdings Corporation, a company inwhich Larry Lipman and Errol Lipman, Directors of the Company, each hold onethird of its share capital. Safeland Holdings Corporation, which held (andcontinues to hold) 57 per cent. of the issued share capital of Safeland, alsoholds a 37.3 per cent. interest in Leo. In view of this, both Larry and ErrolLipman are deemed to be connected with Leo and also Grafton, for the purposes ofsection 320 of the Companies Act 1985. Accordingly, the Broker Agreement isconditional on the approval of shareholders of the Company, which will be soughtat an Extraordinary General Meeting to be convened at 10.00 a.m. on 30 March2006, notice of which is contained in a circular which has been posted toshareholders today. Copies of the circular will be available for viewing at the UK ListingAuthority's document viewing facility which is situated at 25 The NorthColonnade, Canary Wharf, London E14 5HS. Copies of the circular can be obtained from Safeland plc's registered office at94-96 Great North Road, London N2 0NL. -end- This information is provided by RNS The company news service from the London Stock Exchange