Pathfinder Properties PLC
11 November 2002
Pathfinder Properties PLC ('the Company' or 'Pathfinder')
Tender Offer ('Offer') by Hichens Harrison & Co. plc ('Hichens Harrison')
on behalf of Sunnyview Limited ('Sunnyview') for
up to 25% of the issued share capital of the Company
The Board of Pathfinder announces that it is today despatching a letter to
Pathfinder shareholders ('Shareholders') explaining why it believes, after
careful consideration, that Shareholders should ignore the Offer, describing it
as unsolicited, opportunistic and inadequate.
The main reasons behind the Board's recommendation to Shareholders are as
follows:
• Pathfinder's published Net Asset Value at 30 June 2002 was 19p per
share. The Offer is at 12p per share - a 36.8% discount to net asset
value.
• The published Net Asset Value of 19p per share does not fully reflect
- planning permission at River Quarter, Manchester; or
- the sale of Merchant Village, Glasgow for £15.3 million cash.
• Following the sale of Merchant Village, Glasgow, the Group has cash
amounting to approximately 9p per share. Thus the Offer values the
remaining net assets and development potential of the Group at only 3p
per share.
• The residential property market, in which the Group is significantly
involved, continues to be buoyant, with the latest quarterly survey
carried out by the Land Registry reporting an 18% rise in house prices
in the last year.
• The Board understands that Mr Edward and Mr Jeffrey Azouz, the ultimate
owners of Sunnyview, are experienced property investors and therefore
recognise the potential value in the Company's development sites.
Shareholders should not allow them to realise this potential for their
benefit, not the benefit of Shareholders.
Copies of the letter to Shareholders will be available for one month from
today's date from the Company's head office at Capital House, Michael Road,
London SW6 2YH and from the Company's website at www.pathfinderplc.com.
The Directors of Pathfinder accept responsibility for the information contained
in this document which has been issued by Pathfinder Properties PLC, Capital
House, Michael Road, London SW6 2YH. To the best of the knowledge and belief of
such Directors (who have taken all reasonable care to ensure that such is the
case) the information contained in this document is in accordance with the facts
and does not omit anything likely to affect the import of such information.
This announcement has been approved for the purposes of section 21 of the
Financial Services and Markets Act 2000 by Nabarro Wells & Co. Limited, which is
regulated by the Financial Services Authority.
Enquiries:
John Parry, Robert Lo Peter Trevelyan-Clark Jeremy Carey
Malcolm Bacchus
Pathfinder Properties Nabarro Wells & Teather & Greenwood Tavistock
PLC Co. Limited Communications
020 7736 9669 020 7710 7407 020 7426 9081 020 7600 2288
This information is provided by RNS
The company news service from the London Stock Exchange
Translate
