Response to Tender Offer
May 28 2010 - 1:01AM
UK Regulatory
TIDMPEG TIDMWTH
RNS Number : 6900M
Petards Group PLC
28 May 2010
PETARDS GROUP PLC
("Petards" or the "Company")
(AIM: PEG)
Response to Tender Offer
Not for release, publication or distribution, in whole or in part, in, into or
from the United States, Canada, Australia or Japan.
The Directors of Petards ("Directors" or the "Board") have noted the
announcement of a tender offer ("Tender Offer") by Religare Capital Markets (UK)
Limited on behalf of Water Hall Group plc ("Water Hall") to acquire up to
104,511,925 ordinary shares of 1p each in the Company ("Petards Shares").
The Tender Offer at a price of 0.70 pence represents a premium of 27.27 per
cent. over the closing mid-market price of 0.55 pence per Petards Share on 26
May 2010, the day before the announcement of the Tender Offer.
If Water Hall were to acquire all of the Petards Shares it is tendering for its
shareholding would represent approximately 29.99 per cent. of the issued
ordinary share capital of Petards. This level of shareholding would allow it to
veto any special resolutions proposed by the Board.
Although it recognises that the Tender Offer price represents a premium to the
market price of a Petards Share on 26 May 2010, the Board does not consider that
the Tender Offer fully reflects the underlying value of the Company.
However the Directors recognise that shareholders whose holdings of Petards
Shares are currently worth less than GBP3 will (assuming the Tender Offer
becomes unconditional) be better off accepting the Tender Offer than they will
be under the terms of the Company's proposed share re-organisation, details of
which were announced on 19 May 2010 and were set out in a circular to
shareholders dated 19 May 2010, copies of which are available from the company's
website (http://www.petards.com). A general meeting to approve the share
re-organisation has been convened for 24 June.
Shareholders who are in any doubt about the Tender Offer or what action to take
are recommended to consult a person authorised under the Financial Services and
Markets Act 2000 who specialises in advising on the acquisition of shares and
other securities before taking any action.
+---------------------------------+---------------------------------+
| Contacts: | |
+---------------------------------+---------------------------------+
| | |
+---------------------------------+---------------------------------+
| Petards Group plc | www.petards.com |
+---------------------------------+---------------------------------+
| Andy Wonnacott, Finance | +44 (0) 191 420 3000 |
| Director | |
+---------------------------------+---------------------------------+
| | |
+---------------------------------+---------------------------------+
| WH Ireland Limited | www.wh-ireland.co.uk |
+---------------------------------+---------------------------------+
| Mike Coe / Marc Davies | +44 (0) 117 945 3470 |
+---------------------------------+---------------------------------+
| | |
+---------------------------------+---------------------------------+
| Walbrook PR Limited | www.walbrookpr.com |
+---------------------------------+---------------------------------+
| Paul McManus | Tel: +44 (0) 20 7933 8787 |
+---------------------------------+---------------------------------+
| | Mob: +44 (0) 7980 541 893 |
+---------------------------------+---------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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