Business
Change of Supplier
Change of Supplier.
About this update from Telecom Plus Plc
[{"type":"text","content":"\n Telecom Plus PLC\n16 February 2006\n\n\nNews Release\n\n16 February 2006\n\n Telecom plus plc (the 'Company')\n\n Change of Energy Supply Arrangements\n\nThe Company announces today that it has agreed to sell its Energy Companies (Gas\nPlus Supply Limited, Electricity Plus Supply Limited and Plus Shipping Services\nLimited) to Npower Limited ('npower') for a nominal consideration and to\nsimultaneously enter into a Management Services Agreement with npower and the\nEnergy Companies. In addition, the Company is entering into a Put Option\nAgreement with npower which is deemed to be a Class 1 transaction for the\npurposes of the Listing Rules (together the 'Transaction'). As such the Put\nOption Agreement requires shareholder approval and if approved, the Transaction\nwill take effect retrospectively from 1 January 2006. The Company will be\nposting a circular to shareholders in connection with the Transaction to seek\nsuch approval in due course.\n\nDetails of the Transaction\n\nThe Transaction involves npower assuming the obligation to supply gas and\nelectricity to Telecom plus' customers. It comprises the following principal\nelements:\n\n • sale of the Energy Companies to npower, which will mean that npower will\n thereby become responsible for the supply of gas and electricity to the\n customers of those companies.\n\n\n • provision of management services by the Company to npower and the Energy\n Companies. The Company will remain responsible for managing all aspects of\n the customer relationship with the energy customers on behalf of npower and\n the Energy Companies, including billing (as part of its multi-utility\n proposition), customer service, metering, debt collection and\n administration, in return for a commission on energy used by the customers.\n\n\n • grant of the put option by the Company - under the terms of the Put\n Option Agreement, in the event of a change of majority control of the\n Company prior to six months after the call options set out below lapsing,\n the Company can be required to repurchase the Energy Companies or the\n customer contracts of the Energy Companies. The amount payable to npower in\n the event that the Put Option is exercised is £50 per energy service\n supplied together with a commission of 10 per cent. of the revenues\n generated from such customers over the succeeding fi...