14th Nov 2007 07:02
Amlin PLC14 November 2007 AMLIN PLC PRESS RELEASE For immediate release 14 November 2007 Announcement of return of capital of £120 million Amlin plc ("Amlin" or the "Company") announces that it will, subject toshareholder approval at an extraordinary general meeting to be held on 12December 2007 ("EGM"), return approximately £120 million of capital toshareholders (the "Return of Capital"). This equates to 22.4 pence per ordinaryshare. Amlin's third quarter trading statement is also being announcedseparately today. The Company is in a financially robust position following a number of years ofstrong financial performance and the issuance of long term debt capital in 2006.Having reviewed the Amlin group's ongoing capital requirements, taking accountof Amlin's desire to be able to respond to opportunities to enhance long termgrowth, the Board considers that Amlin is now in a position to make this Returnof Capital to shareholders. The Return of Capital is being made through an issue of B Shares combined with aconsolidation of Amlin's existing ordinary shares. The benefits of thiscombination include: equality of treatment as between shareholders; certainty ofcash return (subject to approval at the EGM); and an enhancement of the pershare dividend paying capacity by reducing the number of ordinary shares inissue. It also maintains the net tangible assets ("NTA") per share at near tothe same level as before the Return of Capital. Furthermore, through offeringthree alternatives to shareholders as set out below, it provides flexibility formany UK shareholders in terms of tax treatment by allowing them a choice as towhen and in what form they receive the return. The B Shares will not be listed or tradable on the London Stock Exchange.Pursuant to the Return of Capital, and conditional on shareholder approval on 12December 2007, each shareholder will receive one B Share for every existingordinary share held on 14 December 2007. The three alternatives to be given to shareholders with respect to their BShares are: (i) to have some or all of their B Shares redeemed by Amlin on the first redemption date at 22.4 pence per B Share; and/or (ii) to receive an initial B Share dividend of 22.4 pence per B Share in respect of some or all of their B Shares, following which those B Shares will convert into deferred shares; and/or (iii) to retain some or all of their B Shares with the opportunity to have such remaining B shares redeemed on specified dates up to August 2009 for 22.4 pence per B Share. It is anticipated that shareholders will receive their cash with respect to BShares elected for alternatives (i) or (ii) above on 17 January 2008. The terms of the share capital consolidation are that ordinary shareholders willreceive 8 new ordinary shares in place of every 9 existing ordinary shares theyown at 6pm on 14 December 2008. The share capital consolidation is expected totake effect, and the newly consolidated ordinary shares are expected to starttrading on the London Stock Exchange, at 8am on 17 December 2007. The Directors believe that the shares of the Company and similar insurers aregenerally valued by the market in relation to NTA per share. Accordingly, theshare capital consolidation is being calculated by reference to the lastpublished NTA as at 30 June 2007 with the intention that the NTA per newordinary share after the share capital consolidation is approximately equal tothe NTA per existing ordinary share beforehand. The NTA as at 30 June 2007 was£918 million. The effect of this share capital consolidation will be to reduce the number ofissued ordinary shares but shareholders will own the same proportion of Amlin asthey did previously, subject to fractional entitlements. Full details of the Return of Capital will be set out in a circular expected tobe despatched to Amlin shareholders on or around 16 November 2007. The Board of Amlin is being advised on the Return of Capital by Hoare GovettLimited. Enquiries: Charles Philipps, Chief Executive, Amlin plc 0207 746 1000Richard Hextall, Finance Director, Amlin plc 0207 746 1000Hannah Bale, Head of Communications, Amlin plc 0207 746 1000Bob Cowdell, Hoare Govett Limited 0207 678 8000John MacGowan, Hoare Govett Limited 0207 678 8000Peter Rigby/David Haggie, Haggie Financial Limited 0207 417 8989 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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