Business
Rejection of LongRiver's revised proposal
Rejection of LongRiver's revised proposal.
About this update from Severn Trent Plc
[{"type":"text","content":"\n \nRNS Number : 1168G Severn Trent PLC 03 June 2013 \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 OR REGULATIONS OF THAT JURISDICTION\n \n3 June 2013\n \nSevern Trent Plc (\"Severn Trent\")\n \nFor Immediate Release\n \n \nRejection of LongRiver's revised proposal\n \n \nThe board of directors of Severn Trent (the \"Board\") announces that it has received a further conditional proposal (the \"Revised Proposal\") from LongRiver Partners, a consortium led by Borealis Infrastructure Management Inc., and including the Kuwait Investment Office and Universities Superannuation Scheme Limited (together, \"LongRiver\"). The Revised Proposal was at a price of 2,125p per Severn Trent ordinary share but assumed that the 45.51p per share final dividend already announced in respect of the year ended 31 March 2013 was not paid to shareholders. If the announced final dividend was paid to shareholders, then the Revised Proposal valued each ordinary share at 2,079.49p.\n \nThe Board of Severn Trent, having consulted its financial advisers, has unanimously concluded that the Revised Proposal, which represents a premium of only 16% to Severn Trent's share price the day before the announcement of LongRiver's interest in Severn Trent, fails to reflect the significant long term value of Severn Trent or to recognise its future potential.\n \nSevern Trent has delivered for shareholders\n· Total shareholder return of 72% since 1 April 2010, the start of the current regulatory review period, through to 31 March 2013\n· Share price growth from 1,208p to 1,825p between 1 April 2010 and 13 May 2013, the day before the announcement of LongRiver's potential interest in Severn Trent\n· Since privatisation, growth in Regulatory Capital Value (\"RCV\") from £865m (as at 31 March 1990) to £7,364m (as at 31 March 2013)\n· Announced policy of dividend growth to March 2015 of RPI+3%\n \nSevern Trent has delivered for customers\n· £11.2bn of investment in the water business since privatisation\n· The current lowest combined water and sewerage char...