Business
RECOMMENDED ACQUISITION
RECOMMENDED ACQUISITION.
About this update from Grainger Plc
[{"type":"text","content":"\n RNS Number : 0859N Grainger PLC 04 June 2010 \n \n\n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE to do so would constitute a violation of the relevant laws of that jurisdiction.\n \n\n\n\n\nFor immediate release\n\n\n4 June 2010\n\n\n\n\n \n \nRECOMMENDED ACQUISITION\n \nof\n \nSovereign Reversions plc\n \nby\n \nGrainger plc\n \nto be effected\nby means of a Scheme of Arrangement\nunder Part 26 of the Companies Act 2006\n \nSummary\n \n· The boards of Grainger and Sovereign Reversions announce that they have reached agreement on the terms of a recommended acquisition by Grainger (or a subsidiary of Grainger) for all of the issued and to be issued ordinary share capital of Sovereign Reversions. Under the terms of the Transaction, Shareholders will receive 202 pence in cash for every one Share. The offer values the entire issued and to be issued share capital of Sovereign Reversions at approximately £34.6 million.\n· The Sovereign Reversions Directors believe the Transaction presents Shareholders with the opportunity to realise their interests in Shares at a significant premium to their market value prior to the commencement of the Offer Period.\n· The Grainger Board believes this is an opportune time to invest in quality and complementary UK residential assets in Grainger's core locations. The Transaction represents an opportunity to acquire a sizeable reversionary portfolio of assets and Home & Capital Advisers, a leading advisory business in the equity release sector.\n· The Grainger and Sovereign Reversions Directors believe that the Transaction will result in:\no strengthening of Grainger's position as a leading equity release provider in the United Kingdom, a sector which the Grainger and Sovereign Reversions Directors strongly believe will become a mass market product as more and more retirees seek to supplement their inadequate pension savings by releasing capital from their principal asset, their homes;\no economies of scale through the rationalisation of management and operating systems being spread across a larger portfolio of assets;\no enhanced ability to access new sources of finan...