24th May 2006 07:02
GUS PLC24 May 2006 Not for release, publication or distribution in or into the United States,Canada, Australia or Japan. 24 May 2006 GUS plc Further information on demerger As announced on 28 March 2006, the Board of GUS proposes, subject to shareholderapproval, that ARG and Experian should be separated by means of a demerger withboth businesses becoming independently listed on the London Stock Exchange.Today, we are updating investors further on the demerger process: Timing: We are aiming to complete the demerger in October 2006, subject toshareholder approval. Debt allocation: At 31 March 2006, GUS had net debt of £2.0bn. The Board of GUSbelieves that Experian, as an independent company, should have net debt of about£1.0bn after the proposed equity issue. This, it believes, would be consistentwith a BBB+/Baa1 credit rating. ARG will be allocated net debt of about £200m,in addition to its substantial leasehold obligations. New share issue in Experian: Subject to any major changes in our financingrequirements prior to the demerger, the Board now expects to raise about £800mthrough the issue of new shares in Experian. These shares will be offered toexisting GUS shareholders and new investors, with new investors being offered amaximum of 5% of Experian's ordinary share capital. Dividend policy: The dividend policy of Experian and ARG is a matter for eachBoard following the demerger. However, at this stage, it is anticipated thatExperian will have a cover of no less than three times and ARG a cover of noless than two times. Outstanding bonds: As announced on 22 May, we have proposed certain amendmentsto the terms and conditions of our outstanding bonds. Approval for theseamendments is being sought from bondholders on 13 June. Tax rates: Subject to any changes in legislation, it is expected that theeffective tax rate based on Benchmark PBT will be in the region of 30% for ARGand in the low twenties for Experian, reflecting its more international businessmix. Reporting currency: Experian will report in US dollars post separation, giventhat the majority of its profit comes from the US. Nearly two-thirds ofExperian's EBIT in 2006 was generated by Experian North America. Sector classification: As previously announced, it is expected that, followingdiscussions with the FTSE, ARG will be classified in the General Retailerssector and Experian in the Support Services sector. We will continue to update the market accordingly as further decisions are made. Enquiries GUSJohn Peace Group Chief Executive 020 7495 0070David Tyler Group Finance DirectorFay Dodds Director of Investor Relations FinsburyRupert Younger 020 7251 3801Rollo Head This announcement is not an offer of securities for sale in any jurisdiction. Any shares to be issued in Experian have not been and will not be registeredunder the US Securities Act of 1933 (the "Securities Act") and may not beoffered or sold within the United States absent registration under theSecurities Act or an exemption from registration. No public offering of suchshares will be made in the United States. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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