RNS Number:4008M
Kingfisher PLC
17 June 2003
EMBARGOED UNTIL 0700 HOURS
17 June 2003
Kingfisher plc
Kingfisher proposing to demerge Kesa Electricals plc on 7 July 2003
Kingfisher plc ("Kingfisher") announces that it is posting documents to its
shareholders today proposing the demerger and public listing of Kesa Electricals
plc ("Kesa Electricals").
The Kingfisher Extraordinary General Meeting ("EGM") to approve the demerger is
scheduled for 4 July. If the demerger is approved by shareholders, Kesa
Electricals is expected to start trading as a separate company on 7 July.
As a result of the demerger Kingfisher shareholders will continue to hold their
shares in Kingfisher and will receive a direct pro rata interest in Kesa
Electricals.
Kesa Electricals is Europe's third largest electricals retailer, operating 790
stores across seven European countries. The company holds the market leading
positions in France through Darty and BUT and is number two by sales in the UK
market with Comet. It also has leading positions in Belgium and the Czech
Republic and Slovakia.
Kesa Electricals will be chaired by David Newlands. Its chief executive will be
Jean-Noel Labroue who has headed the group under Kingfisher since autumn 2000,
and will resign from the Kingfisher Board following shareholder approval of the
demerger. Martin Reavley, formerly director of corporate development at
Kingfisher and managing director of Chartwell Land plc will be Finance Director.
Michel Brossard, Andrew Robb and Peter Wilson have been appointed as non-
executive directors of Kesa Electricals.
Kesa Electricals will be listed on the London Stock Exchange and, subject to the
approval of the French stock market authorities, will have a secondary listing
on the Premier Marche in Paris.
Following the demerger Kingfisher will be focussed on developing its activities
as a dedicated home improvement retailer. It is Europe's leading home
improvement retailer and the world's most international, operating 600 stores
across Europe and Asia. Kingfisher enjoys market leading positions in the UK,
France, Poland, Italy, Taiwan and China.
Commenting, Francis Mackay, Chairman of Kingfisher, said:
"The final step in our strategic transformation, the demerger of Kesa
Electricals, is now in sight and within the promised timetable. The managements
of these two strong and focused businesses can now concentrate on the growth
opportunities in each of their markets. "
Commenting, David Newlands, Chairman of Kesa Electricals, said:
"I am very excited about the opportunities that the demerger presents for the
Kesa business. Kesa Electricals is a leading player in the European electricals
retail market with strong brands and strong market positions. The demerger will
bring greater focus to the business and enable us to drive future growth while
maximising value for our shareholders. "
Enquiries Telephone No
Kingfisher plc
Ian Harding +44 (0) 20 7644 1029
Loraine Woodhouse +44 (0) 207 644 1032
Kesa Electricals plc
Analysts: +44 (0) 20 7251 3801
Lucy Barber
Press: +44 (0) 20 7251 3801
Rollo Head
Notes to Editors:
1. Under the proposals, Kingfisher shareholders on the register at 06.00 a.m. on
7 July 2003 (the "Demerger Record Time ", will receive one Kesa share of nominal
value of 5 pence for each Kingfisher share of nominal value of 13.75 pence held
at the Demerger Record Time. Immediately after the demerger is effective, the
share capital of Kesa Electricals will be consolidated. Consequently,
Kingfisher shareholders will receive one consolidated Kesa share of nominal
value of 25 pence for every five Kesa shares of nominal value 5 pence each held
immediately following admission to the Official List of the UK Listing Authority
and to trading on the London Stock Exchange's market for listed securities
("Admission").
2. The demerger is conditional upon Kingfisher shareholder approval at an
Extraordinary General Meeting to be held at 9:00 a.m. on 4 July 2003 (the "EGM")
and on Admission.
3. Dealings in Kesa shares on the London Stock Exchange and, subject to the
approval of the French stock market authorities, on the Premier Marche of
Euronext Paris are expected to commence at 8:00 a.m. (London Time) on 7 July
2003.
4. In addition, immediately after the demerger is effective and conditional on
Kingfisher shareholder approval at the EGM, the share capital of Kingfisher will
be consolidated on the basis of seven consolidated Kingfisher shares of 15 5/ 7
pence each for every eight Kingfisher shares of 13.75 pence held at the Demerger
Record Time.
The information in this summary should be read in conjunction with the full text
of the attached announcement.
This press release, which has been prepared by and is the sole responsibility of
Kingfisher, has been issued by Kingfisher and has been approved by UBS Limited,
a subsidiary of UBS AG, and by Goldman Sachs International solely for the
purposes of section 21 (2)(b) of the Financial Services and Markets Act 2000.
UBS Limited, which is regulated in the UK by the Financial Services Authority,
is acting exclusively for Kingfisher and Kesa Electricals in connection with the
demerger, share consolidations and Admission and will not be responsible to
anyone other than Kingfisher and Kesa Electricals for providing the protections
afforded to customers of UBS Limited nor for providing advice in relation to the
Demerger, share consolidations or Admission.
Goldman Sachs International, which is regulated in the UK by the Financial
Services Authority, is acting exclusively for Kingfisher in connection with the
demerger and Kingfisher share consolidation and will not be responsible to
anyone other than Kingfisher for providing the protections afforded to customers
of Goldman Sachs International nor for providing advice in relation to the
Demerger and Kingfisher share consolidation.
Today, 17 June 2003, Kesa Electricals' management team will host a presentation
about its business to research analysts in London.
High resolution photographs of Kesa Electricals management are available free of
charge at www.newscast.co.uk (+44 (0) 207 608 1000).
Kingfisher plc
Kingfisher proposing to demerge Kesa Electricals plc on 7 July 2003
Introduction
Kingfisher plc ("Kingfisher") announces that documents relating to the proposed
demerger and listing of its Electricals business (the "Demerger") are being
posted today.
The Demerger, will provide for the establishment of a separate company, Kesa
Electricals plc ("Kesa Electricals" or the "Company") as the parent company of
Darty, Comet, BUT, Vanden Borre, BCC and Datart (the "Electricals Business" of
the Kesa Group).
Kingfisher will effect this Demerger by declaring a dividend in specie to be
satisfied by transferring the Electricals Business to Kesa Electricals and Kesa
Electricals issuing new shares to Kingfisher shareholders pro rata to their
holding of Kingfisher shares at the Demerger Record Time.
The demerger is conditional on Kingfisher shareholder approval and on admission
of the Kesa Electricals shares to the Official List of the UK Listing Authority
and to trading on the London Stock Exchange ("Admission").
Expected timetable
The notice convening the Extraordinary General Meeting of Kingfisher for 9:00
a.m. on 4 July 2003, is set out in a Circular being sent to Kingfisher
shareholders today. At that meeting, shareholder approval will be sought for
the Demerger and other related proposals. If approved by shareholders, it is
expected that the Demerger will become effective and the shares in Kesa
Electricals will commence trading at 8:00 a.m. on 7 July 2003.
In order to be on the register at the Demerger Record Time (6.00 a.m., 7 July
2003), transfers of Kingfisher shares should be lodged by close of business on 4
July 2003.
Background to and reasons for the Demerger
In September 2000, Kingfisher announced a major reorganisation of the group. The
first phase involved the separation of its UK-based general merchandise
business, which included Woolworths and Superdrug. The demerger of the
Woolworths Group, sale of Superdrug and the disposal of Kingfisher's general
merchandise high street property portfolio were completed during 2001.
Kingfisher announced the second and third phases of its strategic transformation
in May 2002. These involved the acquisition of the outstanding minority
interests in Castorama and the separation of Kingfisher's Electricals Business
from its Home Improvement Business. Kingfisher now intends to undertake the
third and final phase of its strategic transformation by demerging its
Electricals Business.
Kingfisher has explored a number of separation options since May 2002. These
include a sale to trade or financial buyers and an Initial Public Offering. In
current market conditions, however, the Kingfisher Board believes the Demerger
is most likely to deliver greatest shareholder value and is therefore the
preferred option.
The separation of the Electricals Business will enable Kingfisher's management
team to focus on its vision as a dedicated home improvement retailer: to create
an integrated, international business that combines international scale with
local marketing and operational skills. Kingfisher will continue to concentrate
on attractive growth markets where it can establish leading positions because it
believes that this will deliver superior returns on invested capital and so
create additional value for shareholders and enhanced opportunities for
employees.
Similarly, the separation will allow the Kesa Electricals management team to
implement its shared trading philosophy across all its retail brands, leveraging
its strong market positions, extensive store network and other distribution
channels and established supply chains to drive growth and returns for its
shareholders.
Basis of the Demerger
Conditional on passing of the Demerger Resolution at the Extraordinary General
Meeting and on Admission, Kingfisher shareholders will be issued:
one Kesa share of nominal value of 5 pence for each Kingfisher share of nominal
value of 13.75 pence held at the Demerger Record Time.
Immediately after the Demerger is effective, the share capital of Kesa
Electricals will be consolidated. Consequently, Kingfisher shareholders will
receive:
one consolidated Kesa share of nominal value 25 pence for every five Kesa shares
of nominal value 5 pence each held immediately following Admission.
In addition, immediately after the Demerger is effective and conditional on
Kingfisher shareholder approval at the EGM, the share capital of Kingfisher will
be consolidated on the basis of seven Kingfisher shares of 15 5/7 pence each for
every eight Kingfisher shares of 13.75 pence held at the Demerger Record Time.
It is expected that, on 7 July 2003, Kesa shares will be admitted to the
Official List and to trading on the London Stock Exchange and, subject to the
approval of the French stock market authorities, on the Premier Marche of
Euronext Paris and that dealings in these shares will commence on that date.
Kingfisher shares will continue to be listed on the London Stock Exchange and on
the Premier Marche of Euronext Paris.
Individual fractional entitlements to consolidated Kesa shares and consolidated
Kingfisher shares will be aggregated and sold in the market. Kingfisher will
retain the aggregate proceeds of sale of such consolidated Kesa shares and
consolidated Kingfisher shares unless the aggregate amount to which any
shareholder would be entitled (net of any commissions, dealing costs and
administrative expenses) is #1 or more in which case that entitlement will be
distributed to such shareholder proportionately to his entitlement, with cheques
for such proceeds expected to be despatched to those entitled (at their risk) by
14 July 2003.
Further details of the Demerger, the share consolidations and the related
proposals relating to employee share schemes are set out in the Circular to
Kingfisher shareholders and the Kesa Electricals Listing Particulars, both dated
17 June 2003.
Kesa Electricals dividend policy
The Directors of Kesa Electricals intend to maintain a progressive dividend
policy, recognising the cash generative nature of the Kesa Group's operating
businesses, with a view to maintaining average dividend cover over time of
around two times. It is intended that the Group's interim dividends will be paid
in December and final dividends will be paid in July in the approximate
proportions of 25 per cent. and 75 per cent. respectively of the total annual
dividend.
Subject to the business performing in line with current expectations, the
Directors of Kesa Electricals expect to pay in December 2003 an interim dividend
of 0.5 pence per non-consolidated Kesa share (or 2.5 pence per consolidated Kesa
share) for the six month period ending 2 August 2003.
Kingfisher dividend policy
The Directors of Kingfisher do not expect that the Demerger will affect the
absolute level of dividends paid in respect of the current financial year to
existing Kingfisher shareholders who retain their shares in Kingfisher and Kesa
Electricals but those dividends should reflect each group's performance
throughout the current financial year.
The Directors of Kingfisher confirm that the Kingfisher dividend policy will
continue to reflect its strategy of investment and growth with the aim of
growing dividends progressively. In the context of this policy, Kingfisher has
historically maintained a target dividend cover of between 2.0 and 2.5 times,
which is compatible with a retail business investing for future growth. The
Board of Kingfisher considers that this policy is still appropriate.
Kingfisher intends to pay an interim dividend in respect of the six month period
ending 2 August 2003 in November 2003.
Continuing arrangements between Kesa Electricals and Kingfisher
Following the Demerger, Kingfisher and Kesa Electricals will each operate as
separate publicly listed companies and neither Kingfisher nor Kesa Electricals
will retain any shareholding in the other. Implementation of the Demerger and
the relationship between Kingfisher and Kesa Electricals after the Demerger is
principally regulated by a Demerger Agreement entered into on 17 June 2003.
Kingfisher has agreed with Kesa Electricals that, following the Demerger,
Kingfisher will continue to provide certain limited head office and related
services to Kesa Electricals and Kesa Electricals will provide Kingfisher with
certain services. These services will be provided on an arm's length and
temporary basis pursuant to a Transitional Services Agreement entered into by
Kingfisher and Kesa Electricals on 17 June 2003 (or pursuant to other ongoing
agreements and arrangements).
Allocation of net indebtedness
As part of the Demerger part of the funding balances due to the Kingfisher Group
are being capitalised and the remaining funding balances due to the Kingfisher
Group are being repaid to Kingfisher through drawdown of the Kesa Group's new
facilities. The pro forma net debt for the Kesa Group as at 1 February 2003 is
#368 million.
Further, following Demerger, Kesa Electricals will repay working capital amounts
owed by the Kesa Group to the continuing Kingfisher Group as at Demerger.
The Kesa Electricals' business
The Kesa Group is an electricals and furniture retailer operating as at 1
February 2003 through 790 stores in seven European countries. It is Europe's
third largest electricals retailing business by sales.
The Kesa Group's businesses offer a broad range of home equipment products
across the key white, brown and grey electrical product categories. In addition,
BUT offers a wide selection of furniture products.
The Kesa Group has market leading positions in electricals retailing in France
(Darty and BUT), Belgium (Vanden Borre) and in the Czech and Slovak market
(Datart). It also has the number two position in the UK (Comet) and a leading
presence in the Netherlands (BCC). Kesa Electricals holds the number two
position in furniture retailing in France through BUT.
Kesa Electricals' businesses share a trading philosophy based on three
principles: Best Price, Best Choice and Best Service. This distinctive customer
proposition is designed to address the needs of a broad customer base, to create
strong brand loyalty in its customers and to deliver a business model that is
both profitable and cash generative. This model has a track record of success
within Kesa Electricals and is being rolled out across the Group's businesses in
line with changing customer aspirations, so as to differentiate Kesa
Electricals' retail brands from those of its competitors.
Kesa Group sales for the financial year to 1 February 2003 were more than #3.4
billion (Euro 5.4 billion) with total retail profit of #193.3 million (Euro 306.0
million).
Trading record
Year ended
1 February 2 February 3 February
2003 2002 2001
# million # million # million
Turnover 3,439.6 3,223.7 2,976.1
Retail profit 193.3 206.7 199.1
A superior business model:
European vision with a local feel - Whilst each of the Kesa Group's businesses
has its own distinct characteristics relevant to its own heritage and the nature
of its local market, each increasingly shares Kesa Electricals' trading
philosophy.
Strong market positions - The Group has leading positions in electricals
retailing in France (Darty and BUT), UK (Comet), Belgium (Vanden Borre),
Netherlands (BCC) and in the Czech Republic and Slovakia (Datart). Kesa
Electricals holds the number two position in furniture retailing in France
through BUT.
Outstanding brand equity - The Kesa Group's brands are amongst the most highly
recognised brands in European electricals retailing. All of Kesa Electricals'
brands, particularly Darty and Comet, have a reputation for value for money,
excellent choice and service. BUT has mass-market appeal with strong brand
awareness based upon consistent communication of its "right price" value
proposition.
Growth through constant innovation in formats, product offering and services -
The Kesa Group invests constantly in evolving existing store formats and in
developing new approaches to the retail consumer. The Group has enhanced its
product offering and services to adapt to changing consumer attitudes, new
products and technologies and local market structures.
Scale benefits across its businesses - Kesa Electricals is pursuing a range of
initiatives with the objective of maximising purchasing scale benefits across
the Group for which Kesa Electricals has established a dedicated Group sourcing
function.
Decentralised infrastructure and Group convergence - Each Kesa Electricals
operating business has its own centralised logistics and IT systems and at a
Group level, Kesa Electricals is developing a common information system for the
commercial and supply chain activities of Darty and Comet.
Robust financial profile - Kesa Electricals has strong operating margins (5.5
per cent. in the financial year ended 1 February 2003 including joint ventures)
and generates stable cash flows, which fund investment in growth opportunities
in new and existing stores.
Proven management team - Each Kesa Electricals brand has a separate management
team responsible for delivering the Group's trading philosophy to customers and
achieving the sales, profit and cash flow targets of individual businesses.
These teams are highly experienced, multi-cultural and have a strong track
record in home equipment retailing.
Kesa Electricals strategy
The Kesa Group aims to improve its financial performance by reinforcing its
strong existing market positions in Europe and by maximising profits across its
retail businesses. In addition, the Group will take advantage of growth
opportunities to sell innovative products and services and to pursue its
expansion in existing markets, while investigating other opportunities in
selected European countries.
The Kesa Groups' strategy encompasses the implementation of its shared trading
philosophy across all its retail brands, leveraging its strong market positions,
extensive store network and other distribution channels and established supply
chain to drive growth and returns for its shareholders.
Kesa Electricals' management team intends to implement this strategy by:
- Strengthening each Kesa Electricals brand store network in its local
market
- Optimising purchasing scale benefits and product mix
- Exploiting new product opportunities
- Offering further value-added services
- Continuing development of multi-channel strategy
Kesa Electricals current trading and prospects
The Kesa Group is continuing to face tough market conditions in continental
Europe for both electricals and furniture products. Total sales for the first
quarter grew 9.1 per cent. but declined 1.3 per cent. on a like-for-like basis.
Retail profit fell by approximately 16 per cent. at constant exchange rates, in
this seasonally less significant quarter.
Although economic conditions remain difficult, especially in continental Europe,
the Kesa Electricals Board considers that the prospects for the Group as a whole
for the current financial year remain in line with its expectations.
Kesa Electricals Board
The Board of Kesa Electricals is as follows:
Executive Directors
Jean-Noel Labroue Chief Executive Officer
Martin Reavley Finance Director
Non-Executive Directors
David Newlands Chairman
Michel Brossard
Andrew Robb
Peter Wilson
Kingfisher's business
Kingfisher is Europe's leading home improvement retailer and the world's most
international, with more than 600 stores across Europe and Asia. It is the
largest home improvement business anywhere outside the USA with market leading
positions in the UK, France, Poland, Italy, Taiwan and China. The Group's main
brands are B&Q, Castorama and Brico Depot. Home Improvement sales during the
financial year ended 1 February 2003 were more than #6.7 billion (including #358
million from Canadian business Reno-Depot which Kingfisher agreed to sell in
April); total sales space was more than 4.1 million square metres.
UK
With 13.5 per cent. of the UK's repair, maintenance and improvement market, B&Q
is the clear leader in UK home improvement. During the financial year ended 1
February 2003, B&Q achieved UK sales of #3.7 billion and had total sales space
in the UK of around two million square metres. B&Q currently operates 324 stores
divided between two formats-B&Q Warehouse and B&Q Supercentre. B&Q is also
developing a new ''mini-Warehouse'' format with a programme of new store
openings and conversions of existing Supercentres. All B&Q stores operate an
''every day low pricing'' (EDLP) pricing strategy.
B&Q's 98 B&Q Warehouses offer around 35,000 product lines in stores with an
average size of around 12,000 square metres. B&Q Warehouse targets serious DIY
enthusiasts and trade professionals with a particular focus on garden and heavy
end products as well as decoration and furniture products for the wider market.
The 226 B&Q Supercentres stock around 16,000 product lines with product areas
covering kitchen and bathroom equipment, lighting, floor coverings, tiles,
gardening, hardware, decorating equipment, tools and heavy end products.
France
The combined Castorama and Brico Depot chains give Kingfisher the leading
position in the French DIY market, which was worth approximately #11 billion
during the financial year ended 1 February 2003. Kingfisher currently operates
105 Castorama stores and 57 Brico Depot stores, with total sales of #2.0 billion
during the last financial year.
Castorama stores have an average size of 9,000 square metres, although the
largest stores are up to 12,000 square metres. Stores carry approximately 45,000
product lines covering decoration, hardware, heavy end building materials and
garden products.
Brico Depot is a smaller format chain aimed at home improvement enthusiasts and
trade professionals, with stores offering around 15,000 product lines and highly
competitive prices. Stores tend to be located in out-of-town retail parks and
have an average size of 5,000 square metres. Brico Depot is planning to expand
the network significantly during the next five years.
International
Kingfisher is concentrating its international development resources on markets
in Europe and Asia that are attractive in terms of their size, expected growth
and profitability, allowing the Group to achieve critical mass on a regional
level and a position of market leadership. This will enable Kingfisher to
exploit its strengths as a high volume, value-based retailer.
In Europe, Kingfisher will focus its international efforts in Poland and Italy.
At the year end, Castorama operated 16 Polish stores and believes there is scope
for significant expansion. In Italy, Castorama has 14 stores and aims to drive
towards a market leading position through further store expansion and format
development.
In Asia, Kingfisher will also continue to develop its established presence in
Taiwan, where B&Q currently operates 14 stores, and in China, where it has eight
stores. Kingfisher hopes to increase the Chinese store network to more than 50
over the next few years.
Kingfisher is currently exploring three other international markets: Turkey,
Spain and South Korea. In Turkey, Kingfisher operates five stores through a
joint venture with the Koc Group. In Spain, Kingfisher will open three Brico
Depot stores in the next twelve months. The first South Korean B&Q store will
open in Seoul during 2004.
Kingfisher is exploring options to exit its Castorama Brazil, Castorama Belgium
and Castorama Germany businesses along with NOMI in Poland. On 23 April 2003,
Kingfisher announced that it had agreed to sell Reno-Depot, its Canadian Home
Improvement Business, subject to Canadian competition authority clearance and
financing. Kingfisher expects to complete this sale in late summer 2003. In
addition, Kingfisher has a strategic investment in Hornbach Holding AG, the
leading German warehouse home improvement retailer which also has store
operations in Austria, Luxembourg, the Netherlands, the Czech Republic and
Switzerland. Joint commercial initiatives are taking place between B&Q,
Castorama and Hornbach.
Screwfix Direct is the UK's leading business-to-business mail order and online
retailer of hardware and tools. It was acquired by B&Q in July 1999.
Kingfisher's strengths
Leading international home improvement retailer - Kingfisher's Home Improvement
Business is mainly located in Europe and Asia. The Board believes that general
demographic trends such as increasing numbers of households, rising levels of
home ownership, rising income levels and increased media interest in home
improvement will support continued growth in consumer demand for home
improvement products and related services.
Positioned in attractive markets - Kingfisher is Europe's leading home
improvement retailer and the world's most international, with more than 600
stores across Europe and Asia. The Group enjoys market leading positions in the
UK, France, Poland, Italy, Taiwan and China. It is the largest home improvement
business anywhere outside the USA.
Strong brands with a value-for-money reputation - Kingfisher operates some of
the best known retail brands in European home improvement, including B&Q,
Castorama and Brico Depot.
Experienced management team - Kingfisher's businesses are led by management
teams with considerable retailing experience.
Significant property assets - Kingfisher continues to own a significant freehold
property portfolio worldwide that is occupied primarily by its own operating
companies in its key trading markets.
Strong financial track record - Kingfisher's Home Improvement Business has
demonstrated consistent year-on-year growth in revenue and operating profit. In
the financial year ended 1 February 2003, sales grew by nearly 16 per cent. to
#6.7 billion, with like-for-like sales up 4.3 per cent. Operating profit over
the same period grew by 24 per cent to #534 million. On average, sales grew by
14.3 per cent, and operating profit by 13.4 per cent during the three financial
years ended 1 February 2003.
Kingfisher strategy
Kingfisher aims to create an integrated, international home improvement business
that combines international scale with local marketing and operational skills.
The Group will concentrate on organic growth opportunities in Europe and Asia
where it has, or can establish, market leading positions.
Specific strategic goals include:
- Roll-out successful store formats in attractive markets and accelerate
product and service innovation
- Revitalise Castorama France
- Develop a strong, focused international business outside the UK and
France to enhance Kingfisher's long term growth potential
- Leverage Group sourcing scale and expertise to drive down the cost of
goods and make supply chains more efficient
Kingfisher capital markets instruments
Discussions with the trustee of Kingfisher's #200 million 8.125 per cent. bonds
due 2007 are ongoing to determine whether these bonds should be redeemed in
accordance with their terms or whether proposals to amend their terms should be
put to bondholders, in each case subject to the demerger taking place. Notes
issued pursuant to Kingfisher's Euro 2,500 million Euro Medium Term Note Programme
will remain outstanding following the Demerger.
UBS Investment Bank (UBS) and Goldman Sachs International advised Kingfisher in
respect of the demerger and UBS is acting as sponsor of the UK listing. BNP
Paribas and Lazard Freres Banque advised Kingfisher on the French aspects of the
demerger and are acting as joint sponsors of the French listing.
Enquiries Telephone No
Kingfisher plc
Ian Harding +44 (0) 20 7644 1029
Loraine Woodhouse +44 (0) 20 7644 1032
Kesa Electricals plc
Analysts: +44 (0) 20 7251 3801
Lucy Barber
Press: +44 (0) 20 7251 3801
Rollo Head
UBS Limited +44 (0) 20 7567 8000
Liam Beere
Tim Waddell
Patrick Coze +33 (0) 1 48 88 36 97
Goldman Sachs International +44 (0) 20 7774 1000
Yoel Zaoui
Steve Wallace
Matt McClure
This press release, which has been prepared by and is the sole responsibility of
Kingfisher, has been issued by Kingfisher and has been approved by UBS Limited,
a subsidiary of UBS AG, and by Goldman Sachs International solely for the
purposes of section 21 (2)(b) of the Financial Services and Markets Act 2000.
UBS Limited, which is regulated in the UK by the Financial Services Authority,
is acting exclusively for Kingfisher and Kesa Electricals in connection with the
Demerger, share consolidations and Admission and will not be responsible to
anyone other than Kingfisher and Kesa Electricals for providing the protections
afforded to customers of UBS Limited nor for providing advice in relation to the
Demerger, share consolidations or Admission.
Goldman Sachs International, which is regulated in the UK by the Financial
Services Authority, is acting exclusively for Kingfisher in connection with the
Demerger and Kingfisher share consolidation and will not be responsible to
anyone other than Kingfisher for providing the protections afforded to customers
of Goldman Sachs International nor for providing advice in relation to the
Demerger and Kingfisher share consolidation.
BNP Paribas and Lazard Freres Banque are acting exclusively for Kingfisher plc
and Kesa Electricals plc in connection with the Demerger and will not be
responsible to anyone other than Kingfisher plc and Kesa Electricals plc for
providing the protections afforded to the respective customers of BNP Paribas
and Lazard Freres Banque nor for providing advice in relation to the Demerger.
This press release does not comprise listing particulars or a prospectus
relating to Kingfisher or Kesa Electricals and does not constitute an offer or
invitation to purchase or subscribe for any securities of Kingfisher or Kesa
Electricals and should not be relied on in connection with a decision to
purchase or subscribe for any such securities. This press release does not
constitute a recommendation regarding the securities of Kingfisher or Kesa
Electricals.
The financial information concerning Kingfisher and Kesa Electricals contained
in this announcement does not amount to statutory accounts within the meaning of
Section 240 of the Companies Act 1985.
Information relating to Kesa Electricals and the Kesa Group contained in this
press release has been extracted from the Listing Particulars relating to Kesa
Electricals and published today. Information relating to Kingfisher has been
extracted from the Circular to Kingfisher shareholders published today. Terms
used in this press release but not defined herein have the meaning given to them
in the Circular to Kingfisher shareholders or the Kesa Electricals Listing
Particulars.
Today, 17 June 2003, Kesa Electricals' management team will host a presentation
about its business to research analysts in London.
High resolution photographs of Kesa Electricals management are available free of
charge at www.newscast.co.uk (+44 (0) 207 608 1000).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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