22nd Jan 2008 15:51
Close Brothers Group PLC22 January 2008 22 January 2008 Close Brothers Group plc ("Close Brothers" or the "Company") Statement in response to announcement by Cenkos Securities plc ("Cenkos") The Board of Close Brothers notes the announcement made by Cenkos earlier todaywithdrawing its indicative offer for Close Brothers. On 8 January 2008, the Board of Close Brothers received an improved indicativeproposal from Cenkos and Landsbanki (together the "Consortium") at 1025 penceper Close Brothers share. On the basis of this revised proposal, Close Brothersengaged in comprehensive discussions with Cenkos and Landsbanki in order tounderstand and advance the Consortium's proposal. During this engagement, CloseBrothers was furnished with details of the conditions that the Consortium wouldneed to satisfy in order to deliver a simultaneous takeover and breakup of theCompany, in particular the requirements that would need to be met in order forthe Consortium to obtain financing for its indicative proposal. The Board ofClose Brothers concluded that there was considerable uncertainty surrounding thedeliverability of the Consortium's indicative proposal, especially in the lightof current market volatility. On 17 January 2008, Cenkos stipulated that a precondition of the Consortium'songoing engagement was the execution of an agreement restricting Close Brothers'flexibility to investigate a transaction with other parties. This agreement,inter alia, would prevent Close Brothers from soliciting offers for the Companyor any of its divisions, prevent the Company from agreeing a break feearrangement with any third party and would deliver a substantial work fee to theConsortium for each week it continued due diligence. Given the considerableuncertainty surrounding the deliverability of the Consortium's indicativeproposal and the potential interest of third parties, the Board of CloseBrothers concluded that it would not be in shareholders interests to restrictthe Company's flexibility by entering into such an agreement. As a result,Cenkos has decided to withdraw from discussions with Close Brothers. The Board of Close Brothers remains committed to delivering maximum value forshareholders and can confirm that it remains in discussions with a number ofparties regarding potential offers for Close Brothers. These discussions remainat an early stage and, particularly in light of current market volatility, therecan be no certainty that they will lead to an offer. Further announcements will be made as and when appropriate For more information please contact: Close Brothers Group Colin Keogh, Chief Executive 020 7426 4000Justin Clark, Head of Communications 020 7655 3784 Maitland David Waller 020 7379 5151Anthony Silverman 020 7379 5151 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Close BrosCNKS.L