Business
Offer for Howle Holdings plc
Offer for Howle Holdings plc.
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[{"type":"text","content":"\n Elektron PLC\n28 September 2006\n\n\nNot for release, publication or distribution in or into the United States of\nAmerica, Canada, Australia, Republic of Ireland, Republic of South Africa or\nJapan or any other jurisdiction if to do so would constitute a violation of the\nrelevant laws of such jurisdiction\n\n\nFor immediate release 28 September 2006\n\n Recommended Offer\n by Beaumont Cornish Limited ('Beaumont Cornish')\n on behalf of Elektron plc ('Elektron')\n for Howle Holdings plc ('Howle')\n\nHighlights\n\n • The Boards of Elektron and Howle today announce that they have reached\n agreement on the terms of a recommended offer to be made by Beaumont\n Cornish, on behalf of Elektron, for the whole of the issued and to be issued\n ordinary share capital of Howle\n • The Offer values each Howle Share at 9.97 pence (based on the Closing\n Price of one Elektron Share of 18.25 pence on 27 September 2006, being the\n last practicable Dealing Day prior to this announcement) and comprises:\n\n29 New Elektron Shares and 468 pence in cash for every 100 Howle Ordinary Shares\n\n • The Offer values the entire issued and to be issued share capital of\n Howle at approximately £3.077 million and each Howle Ordinary Share at 9.97\n pence representing a premium of 28.7 per cent. over the Closing Price of a\n Howle Ordinary Share of 7.75 pence on 27 September 2005, being the last\n practicable Dealing Day prior to this announcement\n • The Elektron Directors believe that the acquisition of Howle represents\n a diversification from Elektron's existing business of electromechanical\n components but that Elektron and Howle share similar characteristics since\n they both manufacture engineered components for industrial customers\n • The Offer will enable Howle Shareholders to participate in the benefits\n expected to arise from Howle becoming part of the enlarged Elektron Group\n • In aggregate, irrevocable undertakings to accept, or to procure the\n acceptance of, the Offer have been received in respect of 19,860,585 Howle\n Shares, representing 68.42 per cent. of the existing issued share capital of\n Howle\n\nCommenting on the Offer, Matthew Chaloner, Chief Executive of Howle, said:\n\n'The Howle Group is currently at a crossroads. The Board has stabilised the\nGroup, reducing net debt and returning it to profitability over a...