Quadrant Group PLC
23 November 1999
On 8 June 1999 Quadrant Group plc (the 'Company' or
'Quadrant') announced that it had received an approach that
may or may not lead to an offer being made for the Company.
Discussions regarding the approach have continued. Since then
two other developments have been announced:
1. On 27 September 1999, following shareholders' approval,
Quadrant entered into a Strategic Alliance with
FlightSafety Boeing Training International Inc ('FSB')
under which FSB purchased Quadrant's three full flight
simulators for £4.5 million, Quadrant agreed to provide
maintenance and other services to FSB for a minimum of
five years, and FSB and Quadrant agreed to co-operate in
other areas. FSB is the world's largest provider of
simulator training for civilian airline pilots. As a
result of this transaction Quadrant's net debt was
substantially eliminated.
2. On 9 November 1999 Quadrant announced that its 50% joint
venture company had won selection by the Ministry of
Defence as Preferred Bidder for an approximately £50
million 30 year Public Finance Initiative contract for
the provision of simulator flight training for the RAF's
E3D Sentry aircraft.
The Directors of Quadrant consider that, provided the E3D
contract is successfully finalised by April 2000 as planned,
these two developments taken together are likely to have a
significant positive impact on the future value of the
Company, and have made it unlikely that the discussions
referred to on 8 June would result in an offer being made for
the Company that the Directors would be able to recommend.
The discussions have therefore terminated.