UIL Limited Update re investment in Somers & Placing Programme (7280M)
17 October 2016 - 11:06PM
UK Regulatory
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RNS Number : 7280M
UIL Limited
17 October 2016
17 October 2016
UIL Limited
("UIL" or the "Company")
Update re further investment in Somers Limited and closing of
the Placing Programme
On 18 May 2016, the Company published a circular (the
"Circular") containing proposals in relation to the purchase by the
Company of 2.45 million shares in Somers Limited, a financial
services company which is listed on the Bermuda Stock Exchange,
from Permanent Investments Limited (the "Proposed Investment"). The
Company announced on 14 July 2016 that two of the conditions to
Completion under the Sale and Purchase Agreement had been satisfied
and that Completion would be dependent upon satisfaction of the
remaining conditions (which had to occur by not later than 31
December 2016, being the long-stop date for Completion under the
Sale and Purchase Agreement).
The Company announces today that although the final condition
has now been satisfied, the Board has decided not to proceed with
the Proposed Investment in light of changes in market conditions
over the last five months and that Permanent Investments Limited
has consented to the Proposed Investment not proceeding.
As set out in the Circular, the principal rationale for the
Proposed Investment was to provide increased ZDP Cover for the ZDP
Shares in light of the 2016 ZDP Share Rollover Offer and placing of
2020 ZDP Shares and 2022 ZDP Shares under the Placing Programme,
details of which were set out in the Prospectus also published on
18 May 2016. The Circular stated that, based on UIL's NAV per
Ordinary Share and Somers' share price and net asset value at that
time, the acquisition would have led to pro forma dilution of 3.2%
although the benefits of the Proposed Investment were expected to
outweigh the initial pro forma dilution in UIL's NAV per Ordinary
Share.
Since that time, UIL's NAV per Ordinary Share has increased from
203.55p to 334.25p, an increase of 64%. As a result, following the
2016 ZDP Share Rollover Offer and placing of 2020 ZDP Shares and
2022 ZDP Shares under the Placing Programme, the ZDP Cover for the
ZDP Shares has also increased significantly from the levels
disclosed in the Prospectus published on 18 May 2016. In light of
such material changes, since the Proposed Investment would still
lead to dilution in the Company's NAV per Ordinary Share, the Board
believes that it would be in Shareholders' best interests if the
Proposed Investment did not proceed. To that end UIL approached
Permanent Investments Limited who confirmed that it consented to
the Proposed Investment not proceeding.
The Company also announces today that, following the issue of 50
million 2022 ZDP Shares pursuant to the 2016 ZDP Share Rollover
Offer and Initial Placing and 14 million 2020 ZDP Shares pursuant
to the Placing Programme, the Placing Programme has now been
closed.
Terms used and not defined in this announcement have the meaning
set out in the Circular.
For further information please contact:
ICM Investment Management Limited
Charles Jillings 01372 271486
Stockdale Securities Limited
Alastair Moreton/Rose Ramsden 0207 601 6118
This information is provided by RNS
The company news service from the London Stock Exchange
END
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