Tungsten Corporation PLC Response to Press Speculation (6727S)
21 March 2016 - 6:01PM
UK Regulatory
TIDMTUNG
RNS Number : 6727S
Tungsten Corporation PLC
21 March 2016
TUNGSTEN CORPORATION PLC
("Tungsten", the "Company" or "Group")
21 March 2016
For Immediate Release
Response to Press Speculation
The Board of Tungsten Corporation Plc ("Tungsten") notes the
recent media speculation in relation to Edmund Truell ("Mr.
Truell") and his purported offer for Tungsten assets and wishes to
provide a clarificatory response.
Mr. Truell ceased to be CEO in July 2015 following a very
difficult period for the company and we have today announced his
resignation from the board. Since July 2015, Mr. Truell has made a
number of suggestions in relation to combining operating businesses
owned by Tungsten with other businesses in which he has an
interest, including Tantalum, a vehicle telematics business.
The Board received an outline of a new transaction structure
from Mr. Truell on Saturday 19th March 2016 which, like its
predecessors, did not involve an offer for Tungsten's shares but
instead suggested that Tungsten's network business and the cash it
expects to receive from the proposed sale of its bank be combined
with certain assets in which he has a majority interest in,
including Tantalum.
The resulting effect of this conceived combination would be that
Tungsten's primary asset would be a minority stake in an enlarged
group of disparate, illiquid assets controlled by Mr. Truell and
Tungsten itself would be transformed into an investment vehicle.
The Board of Tungsten has spent considerable time reviewing these
suggestions, including the most recent proposal, and found them to
date to be universally without merit for shareholders.
The Board believes it has made significant progress in
addressing the challenges facing Tungsten and now believes that the
Group strategy as set out at Tungsten's Capital Markets Day on 9
February 2016 remains the best and most certain path to maximise
the creation of shareholder value.
The Board's priority is to oversee the effective execution of
this strategy under the leadership of Richard M. Hurwitz, Chief
Executive Officer, and his executive management team; it believes
that distractions from that risk destroying value.
Enquiries:
Tungsten Corporation plc.
Richard Hurwitz, Chief Executive
Officer
David Williams, Chief Financial
Officer
Cynthia Alers, Head of Investor +44 (0)7469
Relations 144 546
------------------------------------------- -----------------
Panmure Gordon (Nominated
Advisor) +44 (0)20 7886
Fred Walsh/Peter Steel 2500
------------------------------------------- -----------------
Canaccord Genuity Limited
(Broker)
Simon Bridges/Cameron Duncan/Emma +44 (0)20 7523
Gabriel 8000
------------------------------------------- -----------------
Neustria Partners (Investors
and Analysts)
Robert Bailhache/Nick Henderson/Charles +44 (0)20 3021
Gorman 2580
------------------------------------------- -----------------
About Tungsten Corporation plc
Tungsten Corporation (LSE: TUNG) aims to be the world's most
trusted business transaction network by using data intelligently to
strengthen the global supply chain.
Tungsten Network is a secure e-invoicing platform that brings
businesses and their suppliers closer together with unique
technology that revolutionises invoice processing, maximises
efficiency and improves cashflow management. The network also
provides users with real-time spend analysis through Tungsten
Analytics, and offers access to Tungsten Early Payment, a form of
alternative finance for businesses.
Tungsten serves 56% of the Fortune 500 and 67% of the FTSE 100.
It enables suppliers to submit tax compliant e-invoices in 47
countries, and last year processed transactions worth over $187bn
for organisations such as Alliance Data, Aviva, Cargill, Deutsche
Lufthansa, General Motors, GlaxoSmithKline, Henkel, IBM, Kellogg's
and the US Federal Government.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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