10 Jul 2018 09:01
This announcement contains inside information for the purposes of article 7 of Regulation 596/2014 (the "Market Abuse Regulation").
10 July 2018
Management Consulting Group PLC
Update on the Kurt Salmon escrow funds
Management Consulting Group PLC (the "Group") provides the following update on the Kurt Salmon escrow funds.
As announced on 29 June 2018, the Company received on 26 June 2018 a further letter of claim from Wavestone which set out a number of disputes with a potential further estimated aggregate liability of approximately €1.8 million (approximately £1.6 million) against the second tranche of €4 million held under escrow which guarantee certain contingent liabilities relating to the disposal of parts of the Kurt Salmon business to Wavestone in 2016 (the "KS Escrow Funds"). The Company continues to assess the merits of these further claims.
Under the terms of the sale agreement, the second tranche of €4 million of the KS Escrow Funds was due to be released on 7 July 2018. As a result, a balance of approximately €2.2 million (approximately £1.95 million) has now been released to the Company from the escrow arrangements. The Company and Wavestone have agreed to extend the period of escrow for an amount equal to the approximate €1.8 million (approximately £1.6 million) claimed by Wavestone by a further month to 7 August 2018 so as to allow negotiations over the treatment of the potential indemnification claims raised in Wavestone's letter to be finalised. The Board remains confident as to the Group's overall position in terms of the claims raised to date by Wavestone, and so expects to secure the release of the remaining outstanding KS Escrow Funds progressively. As previously announced, the Board believes a degree of uncertainty still exists as to the timing of the remaining KS Escrow Funds being released to the Group in the second half of 2018.
The Board will provide further updates on these matters as appropriate and continues to recommend that shareholders vote in favour of the resolutions relating to the Placing and Open Offer at the general meeting to be held on 18 July 2018 as outlined in the prospectus published on 29 June 2018.
Management Consulting Group PLC
Tel: +44 20 7710 5000
Nick Stagg, Chairman and Chief Executive
Market Abuse Regulation
The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation. Upon the publication of this announcement via a regulatory information service, this inside information is now considered to be in the public domain.
The person responsible for arranging for the release of this announcement on behalf of the Group is Nick Stagg, Chairman and Chief Executive.
Forward-looking statements
Certain information contained in this announcement constitutes forward looking information. This information relates to future events or occurrences or the Company's future performance. All information other than information of historical fact is forward looking information. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "predict" and "potential" and similar expressions are intended to identify forward looking information. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking information. No assurance can be given that this information will prove to be correct and such forward looking information included in this announcement should not be relied upon. Forward-looking information speaks only as of the date of this announcement.
The forward looking information included in this announcement is expressly qualified by this cautionary statement and is made as of the date of this announcement. The Group does not undertake any obligation to publicly update or revise any forward looking information except as required by applicable securities laws.
END
MMC.L (MMC)