21 Mar 2016 07:01
TUNGSTEN CORPORATION PLC
("Tungsten", the "Company" or "Group")
21 March 2016
For Immediate Release
Response to Press Speculation
The Board of Tungsten Corporation Plc ("Tungsten") notes the recent media speculation in relation to Edmund Truell ("Mr. Truell") and his purported offer for Tungsten assets and wishes to provide a clarificatory response.
Mr. Truell ceased to be CEO in July 2015 following a very difficult period for the company and we have today announced his resignation from the board. Since July 2015, Mr. Truell has made a number of suggestions in relation to combining operating businesses owned by Tungsten with other businesses in which he has an interest, including Tantalum, a vehicle telematics business.
The Board received an outline of a new transaction structure from Mr. Truell on Saturday 19th March 2016 which, like its predecessors, did not involve an offer for Tungsten's shares but instead suggested that Tungsten's network business and the cash it expects to receive from the proposed sale of its bank be combined with certain assets in which he has a majority interest in, including Tantalum.
The resulting effect of this conceived combination would be that Tungsten's primary asset would be a minority stake in an enlarged group of disparate, illiquid assets controlled by Mr. Truell and Tungsten itself would be transformed into an investment vehicle. The Board of Tungsten has spent considerable time reviewing these suggestions, including the most recent proposal, and found them to date to be universally without merit for shareholders.
The Board believes it has made significant progress in addressing the challenges facing Tungsten and now believes that the Group strategy as set out at Tungsten's Capital Markets Day on 9 February 2016 remains the best and most certain path to maximise the creation of shareholder value.
The Board's priority is to oversee the effective execution of this strategy under the leadership of Richard M. Hurwitz, Chief Executive Officer, and his executive management team; it believes that distractions from that risk destroying value.
Enquiries:
Tungsten Corporation plc. Richard Hurwitz, Chief Executive Officer David Williams, Chief Financial Officer Cynthia Alers, Head of Investor Relations | +44 (0)7469 144 546
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Panmure Gordon (Nominated Advisor) Fred Walsh/Peter Steel | +44 (0)20 7886 2500
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Canaccord Genuity Limited (Broker) Simon Bridges/Cameron Duncan/Emma Gabriel |
+44 (0)20 7523 8000 | |
Neustria Partners (Investors and Analysts) Robert Bailhache/Nick Henderson/Charles Gorman |
+44 (0)20 3021 2580 | |
About Tungsten Corporation plcTungsten Corporation (LSE: TUNG) aims to be the world's most trusted business transaction network by using data intelligently to strengthen the global supply chain.
Tungsten Network is a secure e-invoicing platform that brings businesses and their suppliers closer together with unique technology that revolutionises invoice processing, maximises efficiency and improves cashflow management. The network also provides users with real-time spend analysis through Tungsten Analytics, and offers access to Tungsten Early Payment, a form of alternative finance for businesses.
Tungsten serves 56% of the Fortune 500 and 67% of the FTSE 100. It enables suppliers to submit tax compliant e-invoices in 47 countries, and last year processed transactions worth over $187bn for organisations such as Alliance Data, Aviva, Cargill, Deutsche Lufthansa, General Motors, GlaxoSmithKline, Henkel, IBM, Kellogg's and the US Federal Government.