DX (Group) PLC Termination of Discussions with John Menzies plc (8505N)
August 14 2017 - 1:00AM
UK Regulatory
TIDMDX. TIDMMNZS
RNS Number : 8505N
DX (Group) PLC
14 August 2017
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ANNOUNCEMENT
The information contained in this announcement is inside
information for the purposes of article 7 of Regulation
596/2014.
AIM: DX.
14 August 2017
DX (Group) plc
("DX" or "the Company")
Termination of discussions with John Menzies plc
The Board of DX announces that, after due consideration,
discussions with John Menzies plc ("John Menzies") regarding the
potential combination of DX and John Menzies' Distribution division
have been terminated. While the respective Boards believed that the
proposed combination had strong strategic logic for all
stakeholders, the DX Board has been unable to agree suitable terms.
As a result, it believes it to be in the best interests of DX
shareholders to proceed with business transformation on a
stand-alone basis. This approach has the support of both DX's major
shareholder and its bankers, with discussions on new financing
options for DX already underway.
As part of business transformation, the Company intends to make
a number of changes to strengthen the composition of its Board and
is in advanced discussions with individuals regarding potential new
appointments. These individuals are Ron Series, who is proposed as
Chairman designate, Paul Goodson, Russell Black and Lloyd Dunn, who
are proposed as Non-executive Directors. Bob Holt, Chairman, will
be leading these changes after which he intends to retire from the
Company. A further announcement regarding Board changes will be
made in due course.
As previously reported, DX expects to announce its full year
results to 30 June 2017 in late September. Trading in the Company's
shares remains suspended pending further notification.
Bob Holt, Chairman of DX, said:
"Our discussions with John Menzies have been constructive and
the proposed combination of DX and John Menzies' Distribution
division was potentially highly attractive to both sets of
shareholders. However, it has become clear that we would not be
able to agree terms that would be acceptable to our shareholders
and since we have a strong alternative business transformation plan
in place, we have decided that it is the best interests of our
shareholders for us to pursue this course.
"Our major shareholder and our bankers are supportive of the
proposed plans for the business on a stand-alone basis and we have
been exploring new financing options with our bankers. We also
intend to strengthen the Board of Directors and are in advanced
discussions with Ron Series to take the role of Chairman as well as
with Paul Goodson, Russell Black and Lloyd Dunn as potential
Non-executive Directors. We will make a further announcement on
this in due course.
"As we were unable to agree suitable terms with John Menzies, we
believe a stand-alone strategy is the right course for our
shareholders and we are on the front foot with plans for business
transformation and recovery."
Enquiries:
DX (Group) plc
Bob Holt, Chairman M: 07778 798816
Zeus Capital (Financial Adviser T: 020 3829
and Nominated Adviser to DX) 5000
Nick How, Giles Balleny (Corporate
Finance)
Dominic King (Corporate Broking)
KTZ Communications T: 020 3178
6378
Katie Tzouliadis
Irene Bermont-Penn
Emma Pearson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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