TIDMACL
RNS Number : 6973U
Acal PLC
20 January 2017
THIS ANNOUNCEMENT, INCLUDING THE APPIX HERETO AND THE
INFORMATION CONTAINED HEREIN, IS RESTRICTED AND IS NOT FOR
PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN
WHOLE OR IN PART, IN OR INTO THE UNITED STATES (INCLUDING ITS
TERRITORIES AND POSSESSIONS, ANY STATES OF THE UNITED STATES AND
THE DISTRICT OF COLUMBIA), CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC
OF SOUTH AFRICA OR IN OR INTO ANY OTHER JURISDICTION IN WHICH SUCH
PUBLICATION, DISTRIBUTION OR RELEASE WOULD BE PROHIBITED BY ANY
APPLICABLE LAW ("RESTRICTED JURISDICTIONS").
THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT
CONSTITUTE OR FORM PART OF AN OFFER TO SELL OR ISSUE OR A
SOLICITATION TO BUY, SUBSCRIBE FOR OR OTHERWISE ACQUIRE, ANY
SECURITIES IN ANY JURISDICTION IN WHICH ANY SUCH OFFER OR
SOLICITATION WOULD BE UNLAWFUL, INCLUDING THE RESTRICTED
JURISDICTIONS, AND NEITHER THIS ANNOUNCEMENT NOR ANYTHING CONTAINED
HEREIN SHALL FORM THE BASIS OF, OR BE RELIED UPON IN CONNECTION
WITH, ANY SUCH OFFER OR SOLICITATION WHATSOEVER IN ANY OF THOSE
JURISDICTIONS.
20 January 2017
Acal plc
Acquisition of Variohm Holdings Limited for up to GBP13.85
million
Proposed placing to raise approximately GBP14.1 million
Acal plc (LSE: ACL, "Acal", the "Company" or the "Group"), a
leading international supplier of customised electronics to
industry, today announces the acquisition (the "Acquisition") of
Variohm Holdings Limited ("Variohm") and a proposed placing to
raise approximately GBP14.1 million (before expenses).
Acquisition highlights
-- Variohm is a UK based designer, manufacturer and distributor
of electronic sensors and switches which reported audited revenues
of GBP19.4 million, generating an EBITDA of GBP2.0 million and
profit before tax of GBP1.6 million, for the year ended 30 April
2016. The business has continued to grow in its current financial
year.
-- The consideration for Variohm comprises an initial cash
consideration of GBP12.0 million (the "Initial Consideration") with
further contingent cash consideration of up to a maximum of GBP1.85
million, subject to the satisfaction of certain conditions and
growth targets.
-- The Acquisition is highly complementary to the Group's
existing businesses and represents a further step in the Group's
stated strategy of growing its Design & Manufacturing division
with highly differentiated niche and customised electronic
components.
-- The Board expects the Acquisition to bring immediate benefits
to the Group. Notwithstanding the dilutive effects of the proposed
placing, the Acquisition is expected to be enhancing to the Group's
underlying earnings in the first full year post-completion ending
31 March 2018.
-- The Initial Consideration has been funded from the Group's
syndicated debt facility (the "Acquisition Funding"). The
Acquisition Funding will then be repaid from the net proceeds of
the proposed placing (as described in more detail below).
Placing highlights
-- Proposed placing of 6,418,308 new ordinary shares of 5 pence
each in the Company (the "Placing Shares"), at a price of 220 pence
per Placing Share, to raise gross proceeds of approximately GBP14.1
million (the "Placing"). The Placing Shares will represent
approximately 9.99 per cent. of the Company's existing issued share
capital.
-- The Placing is being conducted through an accelerated
bookbuilding process which will commence immediately following this
announcement in accordance with the terms and conditions set out in
the Appendix (which forms part of this announcement, such
announcement and the Appendix together being the
"Announcement").
-- The net proceeds of the Placing will be used to repay the
Acquisition Funding, to fund any future contingent payment and for
working capital and general corporate purposes.
-- The Placing is being fully underwritten by Peel Hunt LLP ("Peel Hunt").
Nick Jefferies, Group Chief Executive of Acal plc, said:
"The acquisition of Variohm continues our strategy of building a
differentiated Group with higher operating margins through the
acquisition of high quality, growing design and manufacturing
businesses. Variohm has a long established track record of
supplying high quality sensors, switches, and motion measurement
systems to industrial customers in the UK and internationally. As
part of the Acal Group, Variohm will gain access to our base of
over 25,000 customers and with it, new sales opportunities. We are
delighted to welcome Variohm and all its employees into the
Group."
Market Abuse Regulation
The information contained within this Announcement is deemed by
the Company 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.
Ends
For further information please contact:
Acal plc 01483 544 500
Nick Jefferies, Group Chief
Executive
Simon Gibbins, Group Finance
Director
Peel Hunt LLP (sole broker
and sole bookrunner) 020 7418 8900
Jock Maxwell Macdonald
Justin Jones
Matthew Brooke-Hitching
Instinctif (Financial PR) 020 7457 2020
Mark Garraway
Helen Tarbet
James Gray
This Announcement should be read in its entirety. In particular,
you should read and
understand the information provided in the "Important Notices"
section below.
The Appendix to this Announcement (which forms part of this
Announcement) sets out the
terms and conditions of the Placing. Persons who have chosen to
participate in the
Placing, by making an oral or written offer to acquire Placing
Shares, will be deemed to
have read and understood this Announcement in its entirety
(including the Appendix) and
to be making such offer on the terms and subject to the
conditions herein, and to be
providing the representations, warranties, agreements,
acknowledgements and
undertakings contained in the Appendix.
Notes to Editors:
About Acal plc
Acal is a leading international supplier of customised
electronics to industry. It designs, manufactures and distributes
customer-specific electronic products and solutions to 25,000
industrial manufacturers and is listed on the London Stock Exchange
(LSE: ACL).
Acal has two divisions: Design & Manufacturing and Custom
Distribution. The majority of its sales comes from products and
solutions which are created specifically for a customer. Acal works
across a range of technologies, namely Communications &
Sensors, Power & Magnetics, Electromechanical & Cabling,
Microsystems, and Imaging & Photonics.
Acal operates through the following wholly-owned businesses:
AcalBFi, Contour, Flux, Foss, Hectronic, MTC, Myrra, Noratel,
Plitron, RSG, Stortech and Vertec. It has operating companies and
manufacturing facilities in a number of markets including the UK,
Germany, France, the Nordic region, Benelux, Italy, Poland and
Slovakia as well as in Asia (China, India, South Korea, Sri Lanka
and Thailand), North America (the US and Canada) and South
Africa.
Introduction to the Acquisition and Placing
The Company is pleased to announce the acquisition of Variohm
and a proposed placing to raise approximately GBP14.1 million
(before expenses) by way of an accelerated bookbuilding
process.
The consideration for the Acquisition comprises an initial cash
consideration of GBP12.0 million to be paid on completion and
contingent cash consideration of up to a maximum of GBP1.85 million
payable in the year ending 31 March 2019, subject to the
satisfaction of certain conditions and growth targets during the
period ending 31 March 2018.
The Initial Consideration has been funded from the Group's
syndicated debt facility (the "Acquisition Funding").
The net proceeds of the Placing will be used to repay the
Acquisition Funding, to fund any future contingent payment and for
working capital and general corporate purposes.
Background to and reasons for the Acquisition
Acal has a clear and established growth strategy for creating
shareholder value through the acquisition of complementary, high
quality customised electronics businesses. The Board considers the
acquisition of Variohm to be consistent with this strategy and
represents a further step in growing its Design & Manufacturing
division.
The Board believes there is a strong strategic rationale for the
Acquisition:
- Builds on Acal's existing product offering with highly
complementary sensor and switch products;
- Niche product range with a differentiated market position;
- High proportion of customised products;
- Highly complementary customer base and target markets aligned
with Acal's cross selling opportunities
- Successful performance track record with proven management remaining with the business; and
- Strong growth prospects.
The Board expects the Acquisition to bring immediate benefits to
the Group. Notwithstanding the dilutive effects of the Placing, the
Acquisition is expected to be enhancing to the Group's underlying
earnings in the first full year post-completion ending 31 March
2018.
Variohm
Variohm was founded in 1974 by its current chairman, Mr Roy
Moffatt, and is headquartered in Towcester, Northamptonshire. The
business designs, manufactures and distributes high quality
sensors, switches and motion measurement systems to industrial
customers in the UK, Europe and North America. The business, which
has grown both organically and by acquisition, will operate within
Acal's Design & Manufacturing division while retaining its
distinct brand identity through its three main brands, Variohm,
Herga and Heason. The key markets served by Variohm include
medical, transportation and industrial, which collectively account
for approximately 65% of sales. Approximately 50% of sales are to
UK customers, with 50% exported, mainly to Germany, France and the
US.
Variohm has been acquired from its shareholders, Mr and Mrs Roy
Moffatt. Mr Moffatt and the management team will remain with the
business following completion. The business employs approximately
150 people across three sites in the UK (Towcester, Bury St Edmunds
and Slinfold) and a branch office in Germany.
Reported audited revenue for the year ended 30 April 2016 was
GBP19.4 million, generating an EBITDA of GBP2.0 million and a
pre-tax profit of GBP1.6 million. The business has continued to
grow in its current financial year. At 30 April 2016, reported
gross assets were GBP7.5 million.
Reported revenue and EBITDA for the last three years were as
follows:
Year ended FY 14 FY15 FY16
30 April
------ ----- ------
Sales (GBPm) 18.3 18.5 19.4
EBITDA(GBPm) 1.2 1.4 2.0
EBITDA (%) 6.6% 7.6% 10.3%
------ ----- ------
At present, Variohm has a strong order book equivalent to
approximately four months' sales.
Details of the acquisition agreement
Under the agreement for the Acquisition entered into between (1)
Roy Moffatt and Joan Moffatt (as sellers), (2) Acal Electronics
Holdings Limited (as buyer) and (3) the Company (as guarantor) (the
"Acquisition Agreement"), the Group has acquired Variohm on a debt
free, cash free basis for an aggregate consideration comprising an
initial cash consideration of GBP12.0 million before expenses and
further contingent cash consideration of up to a maximum of GBP1.85
million.
Further contingent cash consideration of up to a maximum of
GBP1.85 million will be payable in the year ending 31 March 2019,
subject to the satisfaction of certain conditions and growth
targets during the period ending 31 March 2018.
Current trading
The Group announced a trading update today which is set out
below:
"Trading in the third quarter was in line with management
expectations. Group sales(1) increased by 21% and by 5% CER, with
orders up 4% CER. As expected, organic sales(2) for the quarter
improved, being flat with last year compared with a 7% decline in
the first half. The Group remains on track to deliver positive
organic growth in the final quarter.
Gross margins remain firm and ahead of last year, and operating
costs continue to be tightly managed. We maintain our earnings
forecast for the full year.
Net debt at 31 December 2016 was GBP41.1m with a Group gearing
ratio(3) of 1.9 times, in line with the position as reported at the
half year ended 30 September 2016.
Notes
1. Growth rates refer to the comparable prior year period unless
stated.
2. Organic growth for the Group is calculated at Constant
Exchange Rates ("CER"), including the pre-acquisition periods of
Flux, Contour, and Plitron which were acquired last financial year
(on 5 November 2015, 7 January 2016 and 1 February 2016
respectively) and excluding Acal BFi Spain which was closed during
the quarter ended 31 December 2016. The average sterling rate of
exchange weakened 14% against the Euro for the 3 months ended 31
December 2016 compared with the average rate for the second half
last year, weakened 16% against the US Dollar and weakened 14%
against Nordic currencies on average.
3. Group gearing is defined as net debt divided by underlying
EBITDA, annualised for acquisitions.
4. This trading update is based upon unaudited management
accounts and has been prepared solely to provide additional
information on trading to the shareholders of Acal plc. It should
not be relied on by any other party for other purposes. Certain
statements made in this update are forward-looking statements. Such
statements have been made by the Directors in good faith using
information available up until the date that they approved this
update. Forward-looking statements should be regarded with caution
because of the inherent uncertainties in economic trends and
business risks."
Details of the Placing
The Company intends to raise approximately GBP14.1 million
(before expenses of approximately GBP0.5 million) pursuant to the
Placing. The price per Placing Share is 220 pence.
The Placing will be conducted by Peel Hunt in accordance with
the terms and conditions set out in the Appendix to this
Announcement. The bookbuilding process will determine demand for
and participation in the Placing. The bookbuilding will commence
with immediate effect following this Announcement and the books are
expected to close no later than 4.30pm on the date of this
Announcement. However, Peel Hunt reserves the right to close the
books earlier or later without further notice.
The timing of the closing of the books is at the absolute
discretion of Peel Hunt in consultation with the Company. The
allocations will be determined by Peel Hunt in its absolute
discretion following consultation with the Company and will be
confirmed orally by Peel Hunt following the close of the
bookbuilding process. A further announcement will then be made
following the completion of the bookbuilding process.
The Placing is being fully underwritten by Peel Hunt subject to
certain conditions.
The Placing is conditional, inter alia, upon:
-- The Company having complied with its obligations under the
placing agreement which has been entered into between the Company
and Peel Hunt (the "Placing Agreement) (save where failure to do so
is not material in the context of the Placing) and to the extent
that such obligations are required to be performed prior to
Admission;
-- the Acquisition Agreement not having lapsed or terminated and
having been completed in accordance with its terms prior to
Admission; and
-- Admission of the Placing Shares taking place by no later than
8.00 am on 25 January 2017 (or such later date, not being later
than 6 February 2017, as the Company and Peel Hunt may agree).
If any of the conditions are not satisfied, the Placing Shares
will not be issued and all monies received from placees will be
returned to them (at the placees' risk and without interest) as
soon as possible.
The Placing Agreement contains customary warranties given by the
Company to Peel Hunt as to matters relating to the Company and its
business and a customary indemnity from the Company to Peel Hunt in
respect of liabilities arising out of or in connection with the
Placing. The Placing Agreement also contains customary rights of
termination which could enable Peel Hunt to terminate the Placing
prior to Admission in certain limited circumstances.
The Placing Shares will represent approximately 9.99 per cent.
of the existing issued share capital and will, when issued, be
credited as fully paid and will rank pari passu in all respects
with the Company's existing ordinary shares including the right to
receive all dividends and other distributions declared, made or
paid in respect of such shares after the date of issue of the
Placing Shares.
Application will be made for the Placing Shares to be admitted
to the premium segment of the Official List of the Financial
Conduct Authority and to trading on the main market for listed
securities of the London Stock Exchange plc. It is expected that
Admission will become effective and that dealings in the Placing
Shares will commence on or around 25 January 2017.
As part of the Placing, the Directors are themselves intending
to subscribe for Placing Shares at the Placing Price. If Directors
do participate, we anticipate that these related party transactions
would constitute exempt small transactions pursuant to paragraph 1
of Annex 1 to chapter 11 of the Listing Rules.
The terms and conditions of the Placing are set out in the
Appendix to this Announcement.
IMPORTANT NOTICE
This announcement, including the Appendix (together, the
"Announcement"), and the information contained herein is not for
release, publication or distribution, directly or indirectly, in
whole or in part, in or into or from the United States, Canada,
Australia, Japan or the Republic of South Africa, or any other
jurisdiction where to do so might constitute a violation of the
relevant laws or regulations of such jurisdiction (the "Restricted
Jurisdictions"). The Placing Shares have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "Securities Act") or under the securities laws of any
state or other jurisdiction of the United States and may not be
offered, sold, resold or delivered, directly or indirectly, in or
into the United States absent registration under the Securities Act
except pursuant to an exemption from or in a transaction not
subject to the registration requirements of the Securities Act. No
public offering of the Placing Shares is being made in the United
States. The Placing Shares are being offered and sold outside the
United States in "offshore transactions", as defined in, and in
compliance with, Regulation S under the Securities Act. Persons
receiving this Announcement (including custodians, nominees and
trustees) must not forward, distribute, mail or otherwise transmit
it in or into the United States or use the United States mails,
directly or indirectly, in connection with the Placing. This
Announcement does not constitute or form part of an offer to sell
or issue or a solicitation of an offer to buy, subscribe for or
otherwise acquire any securities in any jurisdiction including,
without limitation, the Restricted Jurisdictions or any other
jurisdiction in which such offer or solicitation would be unlawful.
This Announcement and the information contained in it is not for
publication or distribution, directly or indirectly, to persons in
a Restricted Jurisdiction unless permitted pursuant to an exemption
under the relevant local law or regulation in any such
jurisdiction.
No action has been taken by the Company, Peel Hunt or any of
their respective directors, officers, partners, agents, employees
or affiliates that would permit an offer of the Placing Shares or
possession or distribution of this Announcement or any other
publicity material relating to such Placing Shares in any
jurisdiction where action for that purpose is required. Persons
receiving this Announcement are required to inform themselves about
and to observe any restrictions contained in this Announcement.
This Announcement is directed at and is only being distributed
to: (A) persons in member states of the European Economic Area who
are "qualified investors", as defined in article 2.1(e) of the
Prospectus Directive (Directive 2003/71/EC), as amended (the
"Prospectus Directive"), (B) if in the United Kingdom, persons who
(i) have professional experience in matters relating to investments
who fall within the definition of "investment professionals" in
article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005, as amended (the "FPO") or fall
within the definition of "high net worth companies, unincorporated
associations etc" in article 49(2)(a) to (d) of the FPO and (ii)
are "qualified investors" as defined in section 86 of the Financial
Services and Markets Act 2000, as amended ("FSMA") or (C) persons
to whom it may otherwise lawfully be communicated (each, a
"Relevant Person"). No other person should act on or rely on this
Announcement and persons distributing this Announcement must
satisfy themselves that it is lawful to do so. By accepting the
terms of this Announcement, you represent and agree that you are a
Relevant Person.
This Announcement must not be acted on or relied on by persons
who are not Relevant Persons. Any investment or investment activity
to which this Announcement or the Placing relate is available only
to Relevant Persons and will be engaged in only with Relevant
Persons. As regards all persons other than Relevant Persons, the
details of the Placing set out in this Announcement are for
information purposes only.
Persons (including, without limitation, nominees and trustees)
who have a contractual or other legal obligation to forward a copy
of this Announcement should seek appropriate advice before taking
any action.
This Announcement is not being distributed by, nor has it been
approved for the purposes of section 21 of FSMA by, a person
authorised under FSMA. This Announcement is being distributed and
communicated to persons in the United Kingdom only in circumstances
in which section 21(1) of FSMA does not apply.
No prospectus will be made available in connection with the
matters contained in this Announcement and no such prospectus is
required (in accordance with the Prospectus Directive) to be
published.
The information contained in this Announcement is for background
purposes only and does not purport to be full or complete. No
reliance may be placed for any purpose on the information contained
in this Announcement or its accuracy, fairness or completeness.
Certain statements in this Announcement are forward-looking
statements which are based on the Company's expectations,
intentions and projections regarding its future performance,
anticipated events or trends and other matters that are not
historical facts. These forward-looking statements, which may use
words such as "aim", "anticipate", "believe", "could", "intend",
"estimate", "expect" and words of similar meaning, include all
matters that are not historical facts. These forward-looking
statements involve risks, assumptions and uncertainties that could
cause the actual results of operations, financial condition,
liquidity and dividend policy and the development of the industries
in which the Company's businesses operate to differ materially from
the impression created by the forward-looking statements. These
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties and other factors that
could cause actual results to differ materially from those
expressed or implied by such forward-looking statements. Given
those risks and uncertainties, prospective investors are cautioned
not to place undue reliance on forward-looking statements.
Forward-looking statements speak only as of the date of such
statements and, except as required by the UK Financial Conduct
Authority ("FCA"), the London Stock Exchange or applicable law, the
Company undertakes no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Any indication in this Announcement of the price at which Acal
shares have been bought or sold in the past cannot be relied upon
as a guide to future performance. Persons needing advice should
consult an independent financial adviser. No statement in this
Announcement is intended to be a profit forecast and no statement
in this Announcement should be interpreted to mean that earnings
per share of the Company for the current or future financial years
would necessarily match or exceed the historical published earnings
per share of the Company.
Peel Hunt, which is authorised and regulated in the United
Kingdom by the FCA, is acting for the Company and for no one else
in connection with the Placing and will not be responsible to
anyone other than the Company for providing the protections
afforded to clients of Peel Hunt or for providing advice in
relation to the Placing, or any other matters referred to in this
Announcement.
No representation or warranty, express or implied, is or will be
made as to, or in relation to, and no responsibility or liability
is or will be accepted by or on behalf of the Company or Peel Hunt
or by their affiliates or their respective agents, directors,
officers and employees as to, or in relation to, the accuracy or
completeness of this Announcement or any other written or oral
information made available to or publicly available to any
interested party or its advisers, and any liability therefor is
expressly disclaimed.
The Placing Shares to be issued pursuant to the Placing will not
be admitted to trading on any stock exchange other than the London
Stock Exchange's main market for listed securities.
The Appendix to this Announcement sets out the terms and
conditions of the Placing. By participating in the Placing, each
person who is invited to and who chooses to participate in the
Placing by making or accepting an oral and legally binding offer to
acquire Placing Shares will be deemed to have read and understood
this Announcement in its entirety and to be making such offer on
the terms and subject to the conditions set out in this
Announcement and to be providing the representations, warranties,
undertakings and acknowledgements contained in the Appendix.
Members of the public are not eligible to take part in the
Placing and no public offering of Placing Shares is being or will
be made.
Neither the content of the Company's website (or any other
website) nor the content of any website accessible from hyperlinks
on the Company's website (or any other website) is incorporated
into, or forms part of, this Announcement.
APPIX
TERMS AND CONDITIONS OF THE PLACING
IMPORTANT INFORMATION ON THE PLACING FOR INVITED PLACEES
ONLY.
THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION,
RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN
PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR
SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION,
RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL ("RESTRICTED
JURISDICTIONS").
MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE
PLACING AND NO PUBLIC OFFERING OF PLACING SHARES IS BEING OR WILL
BE MADE. THIS ANNOUNCEMENT AND THE TERMS AND CONDITIONS SET OUT AND
REFERRED TO IN IT ARE DIRECTED ONLY AT PERSONS SELECTED BY PEEL
HUNT WHO ARE (A) PERSONS IN MEMBER STATES OF THE EUROPEAN ECONOMIC
AREA WHO ARE "QUALIFIED INVESTORS" FALLING WITHIN THE MEANING OF
ARTICLE 2(1)(E) OF THE EU PROSPECTUS DIRECTIVE (WHICH MEANS
DIRECTIVE 2003/71/EC AND INCLUDES ANY RELEVANT IMPLEMENTING
DIRECTIVE MEASURE IN ANY MEMBER STATE) (THE "PROSPECTUS
DIRECTIVE"); (B) IF IN THE UNITED KINGDOM, TO PERSONS WHO (I) HAVE
PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS FALLING
WITHIN ARTICLE 19(1) OF THE FPO AND WHO FALL WITHIN THE DEFINITION
OF "INVESTMENT PROFESSIONALS" IN ARTICLE 19(5) OF THE FPO OR FALL
WITHIN THE DEFINITION OF "HIGH NET WORTH COMPANIES, UNINCORPORATED
ASSOCIATIONS ETC" IN ARTICLE 49(2)(A) TO (D) OF THE FPO AND (II)
ARE "QUALIFIED INVESTORS" AS DEFINED IN SECTION 86 OF FSMA OR (C)
PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH
PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THIS
ANNOUNCEMENT DOES NOT ITSELF CONSTITUTE AN OFFER FOR SALE OR
SUBSCRIPTION OF ANY SECURITIES IN THE COMPANY. THIS ANNOUNCEMENT
AND THE TERMS AND CONDITIONS SET OUT HEREIN MUST NOT BE ACTED ON OR
RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS. ANY INVESTMENT
OR INVESTMENT ACTIVITY TO WHICH THIS ANNOUNCEMENT RELATES IS
AVAILABLE ONLY TO RELEVANT PERSONS AND WILL BE ENGAGED IN ONLY WITH
RELEVANT PERSONS. EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS
AS TO LEGAL, TAX, BUSINESS AND RELATED ASPECTS OF AN INVESTMENT IN
PLACING SHARES. DISTRIBUTION OF THIS ANNOUNCEMENT IN CERTAIN
JURISDICTIONS MAY BE RESTRICTED OR PROHIBITED BY LAW. PERSONS
DISTRIBUTING THIS ANNOUNCEMENT MUST SATISFY THEMSELVES THAT IT IS
LAWFUL TO DO SO.
No representation or warranty, express or implied, is or will be
made as to, or in relation to, and no responsibility or liability
is or will be accepted by or on behalf of the Company or Peel Hunt
or by their affiliates or their respective agents, directors,
officers and employees as to, or in relation to, the accuracy or
completeness of this Announcement or any other written or oral
information made available to or publicly available to any
interested party or its advisers, and any liability therefor is
expressly disclaimed.
The Placing Shares have not been and will not be registered
under the Securities Act or under the securities laws of any state
or other jurisdiction of the United States and may not be offered,
sold, resold, transferred or delivered, directly or indirectly, in
or into the United States absent registration under the Securities
Act except pursuant to an exemption from or in a transaction not
subject to the registration requirements of the Securities Act. No
public offering of the Placing Shares is being made in the United
States. The Placing Shares are being offered and sold outside the
United States in "offshore transactions", as defined in, and in
compliance with, Regulation S under the Securities Act. Persons
receiving this Announcement (including custodians, nominees and
trustees) must not forward, distribute, mail or otherwise transmit
it or any part of it in or into the United States or use the United
States mails, directly or indirectly, in connection with the
Placing.
This Announcement does not constitute or form part of an offer
to sell or issue or a solicitation of an offer or invitation to buy
or subscribe for or otherwise acquire any securities in any
jurisdiction including, without limitation, the Restricted
Jurisdictions or any other jurisdiction in which such offer or
solicitation is or may be unlawful. No copy or part of this
Announcement and the information contained in it may be published
or distributed, directly or indirectly, to persons in a Restricted
Jurisdiction unless permitted pursuant to an exemption under the
relevant local law or regulation in any such jurisdiction.
The relevant clearances have not been, nor will they be,
obtained from the securities commission of any province or
territory of Canada; no prospectus has been lodged with, or
registered by, the Australian Securities and Investments Commission
or the Japanese Ministry of Finance; and the Placing Shares have
not been, nor will they be, registered under or offered in
compliance with the securities laws of any state, province or
territory of Australia, Canada, Japan or South Africa. Accordingly,
the Placing Shares may not (unless an exemption under the relevant
securities laws is applicable) be offered, sold, resold or
delivered, directly or indirectly, in or into Australia, Canada,
Japan or South Africa or any other jurisdiction outside the United
Kingdom.
No action has been taken by the Company, Peel Hunt, or any of
their respective directors, officers, partners, agents, employees
or affiliates that would permit an offer of the Placing Shares or
possession or distribution of this Announcement or any other
publicity material relating to such Placing Shares in any
jurisdiction where action for that purpose is required. Persons
receiving this Announcement are required to inform themselves about
and to observe any restrictions contained in this Announcement.
Persons distributing any part of this Announcement must satisfy
themselves that it is lawful to do so. Persons (including, without
limitation, nominees and trustees) who have a contractual or other
legal obligation to forward a copy of this Announcement should seek
appropriate advice before taking any action. Persons into whose
possession this Announcement comes are required by the Company and
Peel Hunt to inform themselves about, and observe, any such
restrictions.
Any indication in this Announcement of the price at which Acal
shares have been bought or sold in the past cannot be relied upon
as a guide to future performance. Persons needing advice should
consult an independent financial adviser. No statement in this
Announcement is intended to be a profit forecast and no statement
in this Announcement should be interpreted to mean that earnings
per share of the Company for the current or future financial years
would necessarily match or exceed the historical published earnings
per share of the Company.
Peel Hunt, which is authorised and regulated in the United
Kingdom by the FCA, is acting for the Company and for no one else
in connection with the Placing and will not be responsible to
anyone other than the Company for providing the protections
afforded to clients of Peel Hunt or for providing advice in
relation to the Placing, or any other matters referred to in this
Announcement.
By participating in the Placing, each person who is invited to
and who chooses to participate in the Placing (a "Placee") by
making or accepting an oral offer to subscribe for Placing Shares
is deemed to have read and understood this Announcement in its
entirety (including this Appendix) and to be providing the
representations, warranties, undertakings, agreements and
acknowledgements contained in this Appendix.
EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS AS TO LEGAL,
REGULATORY, TAX, BUSINESS AND RELATED ASPECTS OF AN ACQUISITION OF
PLACING SHARES.
Details of the Placing Agreement and the Placing Shares
The Company has today entered into the Placing Agreement with
Peel Hunt. Pursuant to the Placing Agreement, Peel Hunt has,
subject to the terms set out in such agreement, agreed to use
reasonable endeavours, as agent of the Company, to procure Placees
for the Placing Shares. Peel Hunt will today commence an
accelerated bookbuilding process in respect of the Placing (the
"Bookbuild") to determine demand for participation in the Placing
by Placees. This Appendix gives details of the terms and conditions
of, and the mechanics for participation in, the Placing. The
Placing is fully underwritten by Peel Hunt.
The Placing Shares will, when issued, be subject to the articles
of association of the Company, be credited as fully paid and rank
pari passu in all respects with each other and with the existing
ordinary shares in the capital of the Company (the "Ordinary
Shares"), including the right to receive all dividends and other
distributions declared, made or paid in respect of the Ordinary
Shares after the date of issue of the Placing Shares.
The Placing Shares will be issued free of any encumbrance, lien
or other security interest.
Application for Admission
Application will be made to the FCA for admission of the Placing
Shares to the premium segment of the Official List of the UK
Listing Authority and to London Stock Exchange plc for admission to
trading of the Placing Shares on its main market for listed
securities ("Admission"). Admission is expected to become effective
on or around 25 January 2017 (or such later date as Peel Hunt may
agree with the Company, not being later than 8.00am on 6 February
2017) and dealings in the Placing Shares will commence on the same
day.
Principal terms of the Placing
1 Peel Hunt is acting as sole bookrunner and as agent of the
Company in connection with the Placing on the terms and subject to
the conditions of the Placing Agreement.
2 Participation in the Bookbuild will only be available to
persons who may lawfully be, and are, invited by Peel Hunt to
participate. Peel Hunt and any of its affiliates are entitled to
enter bids in the Bookbuild as principal.
3 The price per Placing Share (the "Placing Price") is a price
of 220 pence and is payable to Peel Hunt (as agent for the Company)
by all Placees. No commissions will be paid to Placees or by the
Placees in respect of any Placing Shares.
4 The completion of the Bookbuild will be determined by Peel
Hunt in its absolute discretion and shall then be announced on a
Regulatory Information Service as soon as is practicable following
completion of the Bookbuild.
5 To bid in the Bookbuild, prospective Placees should
communicate their bid by telephone to their usual sales contact at
Peel Hunt. Each bid should state the number of Placing Shares which
the prospective Placee wishes to subscribe for. Bids may be scaled
down by Peel Hunt on the basis referred to in paragraph 10
below.
6 The Bookbuild is expected to close no later than 4.30 pm on 20
January 2017 but may be closed earlier or later at the discretion
of Peel Hunt. Peel Hunt may, in agreement with the Company, accept
bids that are received after the Bookbuild has closed.
7 Each prospective Placee's allocation will be determined by
Peel Hunt in its absolute discretion following consultation with
the Company and will be confirmed orally by Peel Hunt to such
Placees, and a trade confirmation will be dispatched as soon as
practicable thereafter and the terms and conditions of this
Appendix will be deemed incorporated into the trade
confirmation.
8 Peel Hunt's oral confirmation to any person of an allocation
of Placing Shares will give rise to an irrevocable, legally binding
commitment by that person (who at that point becomes a Placee), in
favour of Peel Hunt and the Company, under which it agrees to
acquire the number of Placing Shares allocated to it on the terms
and subject to the conditions set out in this Appendix and in
accordance with the Company's articles of association. Except with
Peel Hunt's consent, such commitment will not be capable of
variation or revocation after the time at which it is
submitted.
9 The Company will make a further Announcement following the
close of the Bookbuild detailing the number of Placing Shares for
which Placees have been procured.
10 Subject to paragraphs 4 and 5 above, Peel Hunt may choose to
accept bids, either in whole or in part, on the basis of
allocations determined at their discretion (in agreement with the
Company) and may scale down any bids for this purpose on such basis
as it may determine. Peel Hunt may also, notwithstanding paragraphs
4 and 5 above, but subject to the prior consent of the Company,
allocate the Placing Shares after the time of any initial
allocation to any person submitting a bid after time.
11 Each Placee's allocation and commitment to subscribe for
Placing Shares will be made on the terms and subject to the
conditions in this Appendix and will be legally binding on the
Placee on behalf of which it is made and except with Peel Hunt's
consent will not be capable of variation or revocation after the
time at which it is submitted.
12 Each Placee will have an immediate, separate, irrevocable and
binding obligation, owed to Peel Hunt as agent for the Company, to
pay to it (or as it may direct) in cleared funds an amount equal to
the product of the Placing Price and the number of Placing Shares
such Placee has agreed to acquire and the Company has agreed to
allot and issue to that Placee. Each Placee's obligation will be
owed to the Company and to Peel Hunt.
13 Except as required by law or regulation, no press release or
other Announcement will be made by Peel Hunt or the Company using
the name of any Placee (or its agent) in its capacity as Placee (or
agent) other than with such Placee's prior written consent.
14 Irrespective of the time at which the Placee's allocation(s)
pursuant to the Placing is/are confirmed, settlement for all
Placing Shares to be acquired pursuant to the Placing will be
required to be made at the same time on the basis explained below
under "Registration and Settlement".
15 All obligations under the Placing will be subject to
fulfilment of the conditions referred to below under "Conditions of
the Placing" and to the Placing not being terminated on the basis
referred to below under "Rights to terminate under the Placing
Agreement".
16 By participating in the Bookbuild, each Placee will agree
that its rights and obligations in respect of the Placing will
terminate only in the circumstances described below and will not be
capable of rescission or termination by the Placee.
17 To the fullest extent permissible by law and applicable FCA
rules, neither: (a) Peel Hunt (b) any of its affiliates, agents,
directors, officers, consultants of employees nor (c) to the extent
not contained within (a) or (b) any person connected with Peel Hunt
as defined in FSMA ((b) and (c) being together "Affiliates" and
individually an "Affiliate" of Peel Hunt) shall have any liability
(including to the extent permissible by law, any fiduciary duties)
to Placees or to any other person other than the Company whether
acting on behalf of a Placee or otherwise. In particular neither
Peel Hunt nor any of their affiliates shall have any liability
(including, to the extent permissible by law, any fiduciary duties)
in respect of Peel Hunt's conduct of the Placing or of such
alternative method of effecting the Placing as Peel Hunt and the
Company may agree.
Conditions of the Placing
The Placing is conditional upon the Placing Agreement becoming
unconditional and not having been terminated in accordance with its
terms.
The obligations of Peel Hunt under the Placing Agreement are
conditional, inter alia, on the following "Conditions":
1 the Company delivering, by no later than 5.30pm on the
business day immediately prior to the expected date of Admission,
to Peel Hunt, a certificate confirming, inter alia, that none of
the warranties given by the Company in the Placing Agreement was
untrue, inaccurate or misleading when made or would be breached or
be untrue, inaccurate or misleading were it to be repeated by
reference to the facts and circumstances subsisting on the date of
the certificate;
2 the Acquisition Agreement not having lapsed or been terminated
and having been completed in accordance with its terms prior to
Admission;
3 the Company having complied with its obligations under the
Placing Agreement (save where failure to do so it not material in
the context of the Placing) to the extent that such obligations are
required to be performed prior to Admission; and
4 Admission having become effective at or before 8.00 am on 25
January 2017 (or such later date, not being later than 6 February
2017, as the Company and Peel Hunt may agree).
If (a) any of the conditions are not fulfilled (or to the extent
permitted under the Placing Agreement waived by Peel Hunt) by the
relevant time or date specified in the Placing Agreement, or (b)
the Placing Agreement is terminated in the circumstances specified
below, the Placing will lapse and each Placee's rights and
obligations hereunder shall cease and terminate at such time and no
claim may be made by a Placee in respect thereof. Neither the
Company, nor Peel Hunt or any of its Affiliates shall have any
liability to any Placees (or to any other person whether acting on
behalf of a Placee or otherwise) in respect of any decision they
may make as to whether or not to waive or to extend the time and/or
date for the satisfaction of any condition in the Placing Agreement
or in respect of the Placing generally and by participating in the
Placing each Placee agrees that any such decision is within the
absolute discretion of Peel Hunt.
Peel Hunt may waive compliance by the Company with the whole or
any part of any of the Company's obligations in relation to the
conditions in the Placing Agreement. Any such extension or waiver
will not affect Placees' commitments as set out in this
Announcement.
By participating in the Placing, each Placee agrees that its
rights and obligations hereunder terminate only in the
circumstances described below under "Rights to terminate under the
Placing Agreement" and will not be capable of rescission or
termination by the Placee.
Rights to terminate under the Placing Agreement
Peel Hunt may (acting in good faith) at any time before
Admission, terminate its obligations under the Placing Agreement by
giving notice to the Company if, inter alia, Peel Hunt becomes
aware that:
1 any statement of fact contained in this Announcement, or
certain of the other documents delivered in relation to the
Placing, has become untrue, incorrect or misleading in any respect
which Peel Hunt considers, acting in good faith, to be materially
adverse in the context of the Placing; or
2 there has been a breach of any of the warranties or any other
obligation of the Company under the Placing Agreement which Peel
Hunt considers, acting in good faith, to be materially adverse in
the context of the Placing; or
3 an event has occurred or a matter has arisen on or before the
date of the Placing Agreement and before Admission which if it had
occurred or arisen before the date of the Placing Agreement would
have rendered any of the warranties untrue or incorrect, which Peel
Hunt considers, acting in good faith, to be materially adverse in
the context of the Placing: or
4 there has been a breach of any provision of the Acquisition
Agreement by any vendor party to it which Peel Hunt, acting in good
faith, considers to be material in the context of the Placing or,
in the opinion of Peel Hunt acting in good faith, any event has
occurred or matter has arisen after entry into the Acquisition
Agreement which had it occurred or arisen prior to entry into the
Acquisition Agreement would have been such a breach; or
5 any of the Conditions shall have become incapable of
fulfilment before the latest time provided according to the terms
of the Placing Agreement and has not been waived according to the
terms of the Placing Agreement; or
6 there has been: a general banking moratorium in London or any
material disruption to commercial banking or securities settlement
or clearance services in the United Kingdom; any incident of
terrorism or outbreak or escalation of hostilities or any
declaration by the UK or the USA of a national emergency or war;
any crisis of international or national effect or any change in
taxation, economic, political, financial or market conditions or
market sentiment or exchange rates or exchange controls which Peel
Hunt considers, acting in good faith, to be likely to have a
materially adverse effect on the financial or trading position or
prospects of the Group taken as a whole; or any other occurrence of
any kind which Peel Hunt considers, acting in good faith, to have a
materially adverse effect on the market's perception of the Company
or the financial or trading position or prospects of the Group
taken as a whole, and which in each case which Peel Hunt considers,
acting in good faith, makes it impracticable or inadvisable to
proceed with the Placing.
By participating in the Placing, each Placee agrees with Peel
Hunt that the exercise by Peel Hunt of any right of termination or
other discretion under the Placing Agreement shall be within the
absolute discretion of Peel Hunt (acting in good faith) and that
Peel Hunt will not need to make any reference to the Placees in
this regard and that to the fullest extent permitted by law Peel
Hunt and the Company (or the Company's directors, officers or
employees) shall not have any liability whatsoever to the Placees
in connection with any such exercise.
No prospectus
No offering document or prospectus has been or will be prepared,
submitted or approved by the FCA in relation to the Placing and no
such prospectus is required to be published and Placees'
commitments will be made solely on the basis of the information
contained in this Announcement and any information previously
published by or on behalf of the Company by notification to a
Regulatory Information Service.
Each Placee, by accepting a participation in the Placing, agrees
that the content of this Announcement is exclusively the
responsibility of the Company and confirms to Peel Hunt and the
Company that it has neither received nor relied on any information,
representation, warranty or statement made by or on behalf of Peel
Hunt (other than the amount of the relevant Placing participation
in the oral confirmation given to Placees and the trade
confirmation referred to below) or any of its Affiliates, any
persons acting on its behalf or the Company and neither Peel Hunt
nor any of its Affiliates, any persons acting on its behalf, nor
the Company will be liable for the decision of any Placee to
participate in the Placing based on any other information,
representation, warranty or statement which the Placee may have
obtained or received (regardless of whether or not such
information, representation, warranty or statement was given or
made by or on behalf of any such persons).
By participating in the Placing, each Placee acknowledges to and
agrees with Peel Hunt for themselves and as agent for the Company
that, except in relation to the information obtained in this
Announcement, it has relied on its own investigation of the
business, financial or other position of the Company in deciding to
participate in the Placing. Nothing in this paragraph shall exclude
the liability of any person for fraudulent misrepresentation.
Registration and settlement
Settlement of transactions in the Placing Shares (ISIN
GB0000055888) following Admission will take place within the CREST
system, subject to certain exceptions. Peel Hunt reserves the right
to require settlement for and delivery of the Placing Shares to
Placees by such other means that they deem necessary, if delivery
or settlement is not possible or practicable within the CREST
system within the timetable set out in this Announcement or would
not be consistent with the regulatory requirements in the Placee's
jurisdiction.
Each Placee allocated Placing Shares in the Placing will be sent
a trade confirmation in accordance with the standing arrangements
in place with Peel Hunt stating the number of Placing Shares
allocated to it, the Placing Price, the aggregate amount owed by
such Placee to Peel Hunt and settlement instructions. Each Placee
agrees that it will do all things necessary to ensure that delivery
and payment is completed in accordance with either the standing
CREST or certificated settlement instructions that it has in place
with Peel Hunt.
A Placee's entitlement to receive any Placing Shares under the
Placing will be conditional on Peel Hunt's receipt of payment in
full for such Placing Shares by the relevant time to be stated in
the written confirmation referred to above, or by such later time
and date as Peel Hunt and the Company may in their absolute
discretion determine, or otherwise in accordance with that
confirmation's terms.
Interest is chargeable daily on payments not received from
Placees on the due date in accordance with the arrangements set out
above at the rate of two percentage points above the base rate of
Barclays Bank Plc.
Each Placee is deemed to agree that if it does not comply with
these obligations: (i) the Company may release itself (if it
decides in its absolute discretion to do so) and will be released
from all obligations it may have to issue any such Placing Shares
to such Placee or at its direction which are then unissued; (ii)
the Company may exercise all rights of lien, forfeiture and set-off
over and in respect of any Placing Shares to the fullest extent
permitted under its articles of association or otherwise by law and
to the extent that such Placee then has any interest in or rights
in respect of any Placing Shares; (iii) the Company or Peel Hunt
may sell (and both of them is irrevocably authorised by such Placee
to do so) all or any Placing Shares on such Placee's behalf and
then retain from the proceeds, for the account and benefit of the
Company or, where applicable, Peel Hunt (a) any amount up to the
total amount due to it as, or in respect of, subscription monies,
or as interest on such monies, for any Placing Shares, (b) any
amount required to cover any stamp duty or stamp duty reserve tax
(together with any interest or penalties) arising on the sale of
such Placing Shares on such Placee's behalf, and (c) any amount
required to cover dealing costs and/or commissions necessarily or
reasonably incurred by it in respect of such sale; and (iv) such
Placee shall remain liable to the Company (and to Peel Hunt as
applicable) for the full amount of any losses or shortfall and of
any costs which it may suffer or incur as a result of it (a) not
receiving payment in full for such Placing Shares by the required
time, and/or (b) the sale of any such Placing Shares to any other
person at whatever price and on whatever terms actually obtained
for such sale by or for it.
If Placing Shares are to be delivered to a custodian or
settlement agent, the Placee should ensure that the trade
confirmation is copied and delivered immediately to the relevant
person within that organisation.
Insofar as Placing Shares are registered in the Placee's name or
that of its nominee or in the name of any person for whom the
Placee is contracting as agent or that of a nominee for such
person, such Placing Shares will, subject as provided below, be so
registered free from any liability to stamp duty or stamp duty
reserve tax. If there are any circumstances in which any other
stamp duty or stamp duty reserve tax is payable in respect of the
issue of the Placing Shares, neither Peel Hunt nor the Company
shall be responsible for the payment thereof. Placees will not be
entitled to receive any fee or commission in connection with the
Placing.
Representations and Warranties
By participating in the Placing, each Placee (and any person
acting on such Placee's behalf):
1 represents and warrants that it has read and understood this
Announcement in its entirety (including this Appendix)and
acknowledges that its participation in the Placing will be governed
by the terms and conditions of the Placing as referred to and
included in this Announcement (including this Appendix);
2 acknowledges that no prospectus or offering document has been
or will be prepared in connection with the Placing and that it has
not received and will not receive a prospectus or other offering
document in connection with the Placing or the Placing Shares;
3 acknowledges that the ordinary shares in the capital of the
Company are listed on the Official List of the FCA and are admitted
to trading on the London Stock Exchange, and the Company is
therefore required to publish certain business and financial
information in accordance with the rules and practices of the
London Stock Exchange and/or the FCA (collectively "Exchange
Information"), which includes a description of the nature of the
Company's business and the Company's most recent balance sheet and
profit and loss account and that it is able to obtain or access
such information or comparable information concerning any other
publicly traded company without undue difficulty;
4 represents and warrants that it has made its own assessment of
the Company, the Placing Shares and the terms and conditions of the
Placing and has relied on its own investigation of the business,
financial or other position of the Company in accepting a
participation in the Placing and has satisfied itself that the
information is still current;
5 agrees to indemnify on an after-tax basis and hold harmless
each of the Company, Peel Hunt, its Affiliates and any person
acting on their behalf from any and all costs, claims, liabilities
and expenses (including legal fees and expenses) arising out of or
in connection with any breach by it of the representations,
warranties, acknowledgements, agreements and undertakings in this
Announcement including this Appendix and further agrees that the
provisions of this Announcement including this Appendix shall
survive after completion of the Placing;
6 acknowledges that neither Peel Hunt nor any of its Affiliates
nor any person acting on its behalf has provided, and will not
provide it with, any material or information regarding the Placing
Shares or the Company; nor has it requested that Peel Hunt nor any
of its Affiliates nor any person acting on its behalf to provide it
with any such material or information;
7 acknowledges that the content of this Announcement is
exclusively the responsibility of the Company and that neither Peel
Hunt nor any of its Affiliates nor any person acting on its behalf
will be responsible for or shall have any liability for any
information, representation or statement relating to the Company
contained in this Announcement or any information previously
published by or on behalf of the Company and neither Peel Hunt nor
any of its Affiliates nor any person acting on its behalf will be
liable for any Placee's decision to participate in the Placing
based on any information, representation or statement contained in
this Announcement or otherwise. Each Placee further represents,
warrants and agrees that the only information on which it is
entitled to rely and on which such Placee has relied in committing
to subscribe for Placing Shares is the information contained in
this Announcement and any Exchange Information, such information
being all that it deems necessary to make an investment decision in
respect of the Placing Shares and that it has relied on its own
investigation with respect to the Placing Shares and the Company in
connection with its decision to subscribe for Placing Shares and
acknowledges that it is not relying on any investigation that Peel
Hunt, any of its Affiliates or any person acting on its behalf may
have conducted with respect to the Placing Shares or the Company
and none of such persons has made any representations to it,
express or implied, with respect thereto;
8 acknowledges that it has knowledge and experience in
financial, business and international investment matters as is
required to evaluate the merits and risks of subscribing for
Placing Shares. It further acknowledges that it is experienced in
investing in securities of this nature and is aware that it may be
required to bear, and is able to bear, the economic risk of, and is
able to sustain, a complete loss in connection with the Placing. It
has had sufficient time to consider and conduct its own
investigation with respect to the offer and subscription for
Placing Shares, including the tax, legal and other economic
considerations, and has relied upon its own examination and due
diligence of the Company and its affiliates taken as a whole, and
the terms of the Placing, including the merits and risks
involved;
9 represents and warrants that it has not relied on any
confidential price sensitive information concerning the Company in
making its investment decision to participate in the Placing and is
not purchasing the Placing Shares on the basis of material
non-public information;
10 represents and warrants that it has the funds available to
pay for the Placing Shares it has agreed to subscribe for and
acknowledges, agrees and undertakes that it will pay the total
subscription amount in accordance with the terms of this
Announcement on the due time and date set out herein, failing which
the relevant Placing Shares may be placed with other placees or
sold at such price as Peel Hunt determines;
11 acknowledges that it has not relied on any information
relating to the Company contained in any research reports prepared
by Peel Hunt, its Affiliates or any person acting on its or any of
its Affiliates behalf and understands that (i) neither Peel Hunt
nor any of its Affiliates nor any person acting on its behalf has
or shall have any liability for public information or any
representation; (ii) neither Peel Hunt nor any of its Affiliates,
nor any person acting on its behalf, has or shall have any
liability for any additional information that has otherwise been
made available to such Placee, whether at the date of this
Announcement or otherwise; and (iii) neither Peel Hunt nor any of
its Affiliates, nor any person acting on its behalf, makes any
representation or warranty, express or implied, as to the truth,
accuracy or completeness of such information, whether at the date
of this Announcement or otherwise;
12 represents and warrants that (i) it is entitled to acquire
Placing Shares under the laws and regulations of all relevant
jurisdictions which apply to it; (ii) it has fully observed such
laws and regulations and obtained all such governmental and other
guarantees and other consents and authorities (including, without
limitation, in the case of any person on whose behalf it is acting,
all necessary consents and authorities to agree to the terms set
out or referred to in this Announcement including this Appendix)
which may be required thereunder and has complied with all
necessary formalities; (iii) it has all necessary capacity and
authority and is entitled to commit to participation in the Placing
and to perform its obligations in relation thereto and will honour
such obligations; (iv) it has paid any issue, transfer or other
taxes due in connection with its participation in the Placing in
any territory; (v) it has not taken any action which will or may
result in the Company, or Peel Hunt or any of its Affiliates or any
person acting on their behalf in breach of the legal and/or
regulatory requirements of any territory in connection with the
Placing and (iv) if it is a pension fund or investment company it
is aware of and acknowledges that it is required to comply with all
applicable laws and regulations with respect to its subscription
for Placing Shares;
13 represents and warrants that (i) the Placing Shares have not
been and will not be registered under the Securities Act or with
any state or other jurisdiction of the United States, nor approved
or disapproved by the US Securities and Exchange Commission, any
state securities commission in the United States or any other
United States regulatory authority, (ii) it will not offer, sell or
deliver, directly or indirectly, any Placing Shares in or into the
United States other than pursuant to an effective registration
under the Securities Act or in a transaction exempt from, or not
subject to, the registration requirements thereunder and in
compliance with any applicable securities laws of any state or
other jurisdiction of the United States, and (iii) it is outside of
the United States, not acting on a non-discretionary basis for the
account or benefit of a person located within the United States at
the time the undertaking to acquire the Placing Shares is given and
is otherwise acquiring the Placing Shares in an "offshore
transaction" meeting the requirements of Regulation S under the
Securities Act;
14 represents and warrants that it is not, and any person who it
is acting on behalf of is not, and at the time the Placing Shares
are subscribed will not be, a resident of, or with an address in
any Restricted Jurisdiction, and it acknowledges and agrees that
the Placing Shares have not been and will not be registered or
otherwise qualified under the securities legislation of any
Restricted Jurisdiction and may not be offered, sold, or acquired,
directly or indirectly, within those jurisdictions;
15 represents and warrants that, if it is a financial
intermediary, as that term is used in Article 3(2) of the
Prospectus Directive, the Placing Shares purchased by it in the
Placing will not be acquired on a non-discretionary basis on behalf
of, nor will they be acquired with a view to their offer or resale
to, persons in a member state of the European Economic Area which
has implemented the Prospectus Directive other than "qualified
investors" as defined in Article 2.1(e) of the Prospectus
Directive, or in circumstances in which the prior consent of Peel
Hunt has been given to the offer or resale;
16 represents and warrants that it has not offered or sold and
will not offer or sell any Placing Shares to the public in the
United Kingdom or any member state of the European Economic Area
except to persons whose ordinary activities involve them in
acquiring, holding, managing or disposing of investments (as
principal or agent) for the purposes of their business or otherwise
in circumstances which have not resulted in and which will not
result in an offer to the public in the United Kingdom within the
meaning of section 85(1) of FSMA or an offer to the public in any
other member state of the European Economic Area within the meaning
of the Prospectus Directive (which includes any relevant
implementing measure in any Member State of the European Economic
Area);
17 represents and warrants that it has not been engaged to
subscribe for the Placing Shares on behalf of any other person who
is not a Qualified Investor unless the terms on which it is engaged
enable it to make decisions concerning the acceptance of offers of
transferable securities on the client's behalf without reference to
the client as described in section 86(2) of FSMA;
18 represents and warrants that it has only communicated or
caused to be communicated and will only communicate or cause to be
communicated any invitation or inducement to engage in investment
activity (within the meaning of section 21 of FSMA) relating to the
Placing Shares in circumstances in which it is permitted to do so
pursuant to section 21 of FSMA and it acknowledges and agrees that
this Announcement has not been approved by Peel Hunt in its
capacity as an authorised person under section 21 of FSMA and it
may not therefore be subject to the controls which would apply if
it was made or approved as financial promotion by an authorised
person;
19 represents and warrants that it is aware of and has complied
and will comply with all applicable provisions of FSMA with respect
to anything done by it in relation to the Placing Shares in, from,
or otherwise involving the United Kingdom;
20 represents and warrants that it is aware of and has complied
with its obligations in connection with money laundering and
terrorist financing under the Criminal Justice Act 1993, section
118 of FSMA, the Proceeds of Crime Act 2002, the EU Market Abuse
Regulation (2014/596/EU), the Proceeds of Crime Act 2002 (as
amended), the Terrorism Act 2000, the Terrorism Act 2006, the
Antiterrorism Crime and Security Act 2001, the Money Laundering
Regulations (2007) (the "Regulations") and the Money Laundering
Sourcebook of the FCA and, if it is making payment on behalf of a
third party, that satisfactory evidence has been obtained and
recorded by it to verify the identity of the third party as
required by the Regulations;
21 if in the United Kingdom, represents and warrants that it is
a person of a kind described in (i) Article 19(5) (Investment
Professionals) and/or 49(2) (high net worth companies etc.) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order
2005, as amended, and/or an authorised person as defined in section
31 of FSMA; and (ii) section 86(7) of FSMA ("Qualified Investor"),
being a person falling within Article 2.1(e) of the Prospectus
Directive. For such purposes, it undertakes that it will acquire,
hold, manage and (if applicable) dispose of any Placing Shares that
are allocated to it for the purposes of its business only;
22 represents and warrants that its participation in the Placing
would not give rise to an offer being required to be made by it or
any person with whom it is acting in concert pursuant to Rule 9 of
the City Code on Takeovers and Mergers; undertakes that it (and any
person acting on its behalf) will pay for the Placing Shares
acquired by it in accordance with this Announcement on the due time
and date set out in this Announcement or any trade confirmation
issued pursuant to this Announcement against delivery of such
Placing Shares to it, failing which the relevant Placing Shares may
be placed with other Placees or sold as either Peel Hunt or the
Company may, in their absolute discretion, determine and it will
remain liable for any shortfall of the net proceeds of such sale
below the Placing proceeds of such Placing Shares and may be
required to bear any costs, commissions, stamp duty or stamp duty
reserve tax (together with any interest or penalties due pursuant
to the terms set out or referred to in this Announcement) which may
arise upon the sale of such Placee's Placing Shares on its
behalf;
23 acknowledges that if it has received any confidential price
sensitive information about the Company in advance of the Placing,
it warrants that it has received such information within the
marketing soundings regime provided for in article 11 of Regulation
(EU) No. 596/2014 on market abuse (as amended) and associated
delegated regulations and has not: (a) dealt in the securities of
the Company; (b) encouraged or required another person to deal in
the securities of the Company; or (c) disclosed such information to
any person, prior to the information being made publicly
available;
24 acknowledges that neither Peel Hunt, nor any of its
Affiliates nor any person acting on its behalf is making any
recommendations to it or advising it regarding the suitability or
merits of any transaction it may enter into in connection with the
Placing, and that neither Peel Hunt, nor any of its Affiliates nor
any person acting on its behalf has any duties or responsibilities
to it for providing advice in relation to the Placing or in respect
of any representations, warranties, undertakings or indemnities
contained in the Placing Agreement or for the exercise or
performance of any of Peel Hunt's rights and obligations
thereunder, including any right to waive or vary any condition or
exercise any termination right contained therein;
25 acknowledges that it irrevocably appoints any member of Peel
Hunt as its agent for the purposes of executing and delivering to
the Company and/or its registrars any documents on its behalf
necessary to enable it to be registered as the holder of any of the
Placing Shares agreed to be taken up by it under the Placing;
26 represents and warrants that it and any person who is acting
on behalf of it is not, and at the time the Placing Shares are
subscribed will not be, a resident of any Restricted Jurisdiction
and acknowledges that the Placing Shares have not been and will not
be registered or otherwise qualified under the securities
legislation of any Restricted Jurisdiction, nor will a prospectus
be issued in respect of the Placing Shares under the securities
legislation of any Restricted Jurisdiction and, subject to certain
exceptions, may not be offered, sold, taken up, renounced,
delivered or transferred, directly or indirectly, within any
Restricted Jurisdiction;
27 represents and warrants that any person who confirms to Peel
Hunt on behalf of a Placee an agreement to subscribe for Placing
Shares and/or who authorises Peel Hunt to notify the Placee's name
to the Company's registrar, has authority to do so on behalf of the
Placee;
28 acknowledges that the agreement to settle each Placee's
allocation of Placing Shares (and/or the allocation of a person for
whom it is contracting as agent) free of stamp duty and stamp duty
reserve tax depends on the settlement relating only to an
acquisition by it and/or such person direct from the Company of the
Placing Shares in question. Such agreement assumes that the Placing
Shares are not being acquired in connection with arrangements to
issue depositary receipts or to issue or transfer the Placing
Shares into a clearance service. If there were any such
arrangements, or the settlement related to other dealing in the
Placing Shares, stamp duty or stamp duty reserve tax may be
payable, for which neither the Company nor Peel Hunt will be
responsible. If this is the case, the Placee should take its own
advice and notify Peel Hunt accordingly
29 represents and warrants that it, or the person specified by
it for registration as a holder of the Placing Shares, will be
liable for any stamp duty and all other stamp, issue, securities,
transfer, registration, documentary or other duties or taxes
(including any interest, fines or penalties relating thereto), if
any, payable on acquisition of any of the Placing Shares or the
agreement to subscribe for the Placing Shares and acknowledges and
agrees that none of Peel Hunt, the Company, any of their respective
Affiliates or any person acting on behalf of them will be
responsible for any liability to stamp duty or stamp duty reserve
tax resulting from a failure to observe this requirement. Each
Placee and any person acting on behalf of such Placee agrees to
participate in the Placing, and agrees to indemnify the Company and
Peel Hunt on an after--tax basis in respect of the same, on the
basis that the Placing Shares will be allotted to the CREST stock
account of Peel Hunt who will hold them as nominee on behalf of
such Placee until settlement in accordance with its standing
settlement instructions;
30 acknowledges that the Placing Shares will be issued subject
to the terms and conditions set out in this Announcement (including
this Appendix)
31 acknowledges that in order to ensure compliance with the
Money Laundering Regulations 2007, Peel Hunt (for itself and as
agent on behalf of the Company) or the Company's registrars may, in
their absolute discretion, require verification of its identity.
Pending the provision to Peel Hunt or the Company's registrars, as
applicable, of evidence of identity, definitive certificates in
respect of the Placing Shares may be retained at Peel Hunt's
absolute discretion or, where appropriate, delivery of the Placing
Shares to it in uncertificated form, may be retained at Peel Hunt's
or the Company's registrars', as the case may be, absolute
discretion. If within a reasonable time after a request for
verification of identity Peel Hunt (for itself and as agent on
behalf of the Company) or the Company's registrars have not
received evidence satisfactory to them, Peel Hunt and/or the
Company may, at its absolute discretion, terminate its commitment
in respect of the Placing, in which event the monies payable on
acceptance of allotment will, if already paid, be returned without
interest to the account of the drawee's bank from which they were
originally debited;
32 acknowledges that when a Placee or any person acting on
behalf of the Placee is dealing with Peel Hunt, any money held in
an account with Peel Hunt on behalf of the Placee and/or any person
acting on behalf of the Placee will not be treated as client money
within the meaning of the relevant rules and regulations of the FCA
made under FSMA. The Placee acknowledges that the money will not be
subject to the protections conferred by the client money rules; as
a consequence, this money will not be segregated from Peel Hunt
money in accordance with the client money rules and will be used by
Peel Hunt in the course of its business; and the Placee will rank
only as a general creditor of Peel Hunt;
33 acknowledges and understands that the Company, Peel Hunt and
others will rely upon the truth and accuracy of the foregoing
agreements, acknowledgements, representations, warranties,
agreements and undertakings which are given to Peel Hunt, on its
own behalf and on behalf of the Company, are irrevocable;
34 acknowledges that time is of the essence as regard its
obligations in respect of its participation in the Placing under
these terms and conditions;
35 acknowledges that the basis of allocation will be determined
by Peel Hunt in its absolute discretion in consultation with the
Company. The right is reserved to reject in whole or in part and/or
scale back any participation in the Placing;
36 irrevocably authorises the Company and Peel Hunt to produce
this Announcement pursuant to, in connection with, or as may be
required by any applicable law or regulation, administrative or
legal proceeding or official inquiry with respect to the matters
set forth in this Announcement;
37 acknowledges that its commitment to subscribe for Placing
Shares on the terms set out in this Announcement including this
Appendix will continue notwithstanding any amendment that may in
future be made to the terms of the Placing and that Placees will
have no right to be consulted or require that their consent be
obtained with respect to the Company's conduct of the Placing;
38 acknowledges that Peel Hunt may, and its affiliates acting as
an investor for its or their own account(s) may, subscribe for
and/or purchase Placing Shares and, in that capacity may retain,
purchase, offer to sell or otherwise deal for its or their own
account(s) in the Placing Shares, any other securities of the
Company or other related investments in connection with the Placing
or otherwise. Accordingly, references in this Announcement to the
Placing Shares being offered, subscribed, acquired or otherwise
dealt with should be read as including any offer to, or
subscription, acquisition or dealing by, Peel Hunt and/or any of
their respective affiliates acting as an investor for its or their
own account(s). Neither Peel Hunt nor the Company intend to
disclose the extent of any such investment or transaction otherwise
than in accordance with any legal or regulatory obligation to do
so; and
39 acknowledges that its participation in the Placing, these
terms and conditions and any contractual or non-contractual
obligations arising out of, or in relation to thereto, shall be
governed by and construed in accordance with English law and that
the courts of England shall have exclusive jurisdiction to hear and
decide any proceedings which may arise out of or in connection with
these terms and conditions, except that enforcement proceedings in
respect of the Placee's obligation to make payment for the Placing
Shares (together with any interest chargeable thereon) may be taken
by Peel Hunt or the Company in any jurisdiction.
The acknowledgements, agreements, undertakings, representations
and warranties referred to above are given to each of the Company
and Peel Hunt (for its own benefit and, where relevant, the benefit
of its Affiliates) and any person acting on their behalf and are
irrevocable.
No claim shall be made against the Company, or Peel Hunt or its
Affiliates or any other person acting on behalf of any of such
persons by a Placee to recover any damage, cost, charge or expense
which it may suffer or incur by reason of or arising from the
carrying out by it of the work to be done by it pursuant to this
Announcement or the performance of its obligations pursuant to this
Announcement or otherwise in connection with the Placing.
No UK stamp duty or stamp duty reserve tax should be payable to
the extent that the Placing Shares are issued or transferred (as
the case may be) into CREST to, or to the nominee of, a Placee who
holds those shares beneficially (and not as agent or nominee for
any other person) within the CREST system and registered in the
name of such Placee or such Placee's nominee.
Any arrangements to issue or transfer the Placing Shares into a
depositary receipts system or a clearance service or to hold the
Placing Shares as agent or nominee of a person to whom a depositary
receipt may be issued or who will hold the Placing Shares in a
clearance service, or any arrangements subsequently to transfer the
Placing Shares, may give rise to stamp duty and/or stamp duty
reserve tax, for which neither the Company nor Peel Hunt will be
responsible and the Placee to whom (or on behalf of whom, or in
respect of the person for whom it is participating in the Placing
as an agent or nominee) the allocation, allotment, issue or
delivery of Placing Shares has given rise to such stamp duty or
stamp duty reserve tax undertakes to pay such stamp duty or stamp
duty reserve tax forthwith and to indemnify on an after-tax basis
and to hold harmless the Company and Peel Hunt in the event that
either of the Company and/or Peel Hunt has incurred any such
liability to stamp duty or stamp duty reserve tax.
In addition, Placees should note that they will be liable for
any capital duty, stamp duty and all other stamp, issue,
securities, transfer, registration, documentary or other duties or
taxes (including any interest, fines or penalties relating thereto)
payable outside the UK by them or any other person on the
acquisition by them of any Placing Shares or the agreement by them
to acquire any Placing Shares.
All times and dates in this Announcement may be subject to
amendment. Peel Hunt shall notify the Placees and any person acting
on behalf of the Placees of any such changes.
This Announcement has been issued by the Company and is the sole
responsibility of the Company.
Each Placee, and any person acting on behalf of the Placee,
acknowledges that Peel Hunt do not owe any fiduciary or other
duties to any Placee in respect of any representations, warranties,
undertakings or indemnities in the Placing Agreement. Each Placee
and any person acting on behalf of the Placee acknowledges and
agrees that Peel Hunt or any of its Affiliates may, at its absolute
discretion, agree to become a Placee in respect of some or all of
the Placing Shares.
The rights and remedies of Peel Hunt and the Company under these
terms and conditions are in addition to any rights and remedies
which would otherwise be available to each of them and the exercise
or partial exercise or partial exercise of one will not prevent the
exercise of others.
Past performance is no guide to future performance and persons
needing advice should consult an independent financial adviser.
Neither the content of the Company's website nor any website
accessible by hyperlinks on the Company's website is incorporated
in, or forms part of, this Announcement.
All times and dates in this Announcement may be subject to
amendment.
Each Placee may be asked to disclose in writing or orally to
either of Peel Hunt:
(a) if he is an individual, his nationality; or
(b) if he is a discretionary fund manager, the jurisdiction in
which the funds are managed or owned.
This information is provided by RNS
The company news service from the London Stock Exchange
END
ACQPGUBPGUPMUQU
(END) Dow Jones Newswires
January 20, 2017 02:01 ET (07:01 GMT)