Business
Further re Capcon EGM
Further re Capcon EGM.
About this update from Christie Group Plc
[{"type":"text","content":"\n Christie Group PLC\n27 March 2006\n\n Christie Group plc\n Request for postponement of Capcon Holdings plc EGM and\n For provision of full information to Capcon shareholders\n\n\nChristie Group plc notes the announcement made by Capcon Holdings plc on Friday\n24 March 2006 at 4.22 pm.\n\nThe Board of Capcon have said that, in light of the 'comments and actions of\nChristie Group plc', they will not propose Resolution 5 at the EGM convened for\n29 March 2006. This is the resolution authorising the disposal of Capcon's\nstocktaking activity to Lakesong Trading Limited, a company owned and controlled\nby two directors of Capcon.\n\nThis step has been taken after Christie Group made a legally binding offer to\nthe Capcon Board to buy the stocktaking business identical in all material\nrespects to the Lakesong offer save only that the consideration is £1,000,000\nrather than £700,000 (the 'Christie Offer'). The Christie Offer remains open\nfor acceptance by the Board of Capcon and Christie has confirmed that it is\nwilling to complete the acquisition on 29 March 2006.\n\nCapcon had put forward the disposal to Lakesong as an alternative to the issue\nof a series of Convertible Secured Loan Notes which will mostly be subscribed by\ndirectors of the Company. The Board of Capcon continues to recommend that the\ncompany issues these Loan Notes to raise only a very modest amount of money, the\neffect of which will be to water down all existing holders and pass control to a\nconcert party including some of the directors. The conversion price under the\nloan notes is 5p per share.\n\nChristie Group plc notes that the closing middle market price of a Capcon share\nwas as high as 14p on 24 March 2006 and has remained well above the conversion\nprice of the loan notes.\n\nAt no time has Capcon made available to shareholders any current trading\ninformation or commentary on the sufficiency of working capital which would flow\nfrom the proposals being put to the EGM. Christie Group believes that this\ninformation is essential to shareholders to consider whether to approve the\nissue of the Loan Notes instead of the disposal to Christie Group of the\nstocktaking activities.\n\nChristie Group, which is a 14.99% shareholder of Capcon, has made repeated\nrequests to Capcon's Board for up-to-date financial information (not including\ncommercially...