Business
Rejection of Pre-Conditional Possible Offer
Rejection of Pre-Conditional Possible Offer.
About this update from Severn Trent Plc
[{"type":"text","content":"\n \nRNS Number : 6225G Severn Trent PLC 10 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 \n7 June 2013\n \nSevern Trent Plc (\"Severn Trent\")\n \nFor Immediate Release\n \n \nRejection of LongRiver's Pre-Conditional Possible Offer\n \n \nThe board of directors of Severn Trent (the \"Board\") announces that it has given careful consideration to the pre-conditional possible offer (the \"Proposal\") announced today by LongRiver Partners, a consortium led by Borealis Infrastructure Management Inc., and including the Kuwait Investment Office and Universities Superannuation Scheme Limited (together, \"LongRiver\"). \n \nThe Proposal is at a price of 2,200p per Severn Trent ordinary share but, as with previous proposals received from LongRiver, assumes that the 45.51p per share final dividend already announced in respect of the year ended 31 March 2013 is not paid to shareholders. If the announced final dividend is paid to shareholders - and Severn Trent ordinary shares are due to go ex-dividend on 19 June 2013 - then the Proposal values each Severn Trent ordinary share at 2,154.49p.\n \nAfter LongRiver's representatives had informally and in private indicated a series of lower proposals to representatives of Severn Trent, the Proposal was announced unilaterally by LongRiver. The Proposal represents an increase of only 3.5% on LongRiver's previously announced conditional proposal and a premium of only 20.5% to Severn Trent's share price the day before the announcement of LongRiver's interest in Severn Trent.\n \nThe Board, having consulted its financial advisers, has unanimously concluded that the Proposal continues to fail to reflect the significant long term value of Severn Trent or to recognise its future potential.\n \n· Severn Trent has a record of delivering value for both shareholders and customers\n· Severn Trent has delivered total shareholder return of 72% since 1 April 2010, the start of the current regulatory review period, through to 31 March 2013\n· It operates in a well understood and transparent regulatory framework w...