EGM Update

24 Mar 2006 16:22

Capcon Holdings PLC24 March 2006 Capcon Holdings PLC24 March 2006 Capcon Holdings plc ("Capcon" or the "Company" or the "Group")EGM update The Board of Capcon announced on 3 March 2006 the convening of an ExtraordinaryGeneral Meeting ("EGM")to consider the refinancing of Capcon by certaindirectors and shareholders or, in the alternative, the sale of the business,assets and certain liabilities of the Audit and Stocktaking and the CommercialInvestigations Divisions of the Capcon group (the "Audit and InvestigationsBusinesses") to a company in which the executive directors of the Company areinterested (the "Disposal"). The Board has noted recent comments and actions by Christie Group plc, a directcompetitor to Capcon in a number of business areas. The Board has decided, inlight of these, not to propose Resolution 5 at the EGM, the resolutionauthorising the Disposal. The Directors reiterate their recommendation that shareholders vote in favour ofResolutions 1, 2, and 4 to be proposed at the EGM to enable the constitution andissue of the Convertible Loan Stock and the subscription for the ConvertibleLoan Stock by the Directors and certain shareholders of the Company. TheDirectors believe that the refinancing and hence the continued independence ofthe Company's businesses is in the best interest of all shareholders. However, should shareholders not pass Resolutions 1 to 4, which enable Capcon toeffect the refinancing, the Board will consider other options that they believeto be in the best interests of all shareholders. Capcon Holdings plc Paul Jackson Tel: 0870 067 5050 Insinger de Beaufort Louis Castro Tel: 020 7190 7000 This information is provided by RNS The company news service from the London Stock Exchange