TIDMSTRL
RNS Number : 1482Q
Stirling Industries PLC
17 October 2019
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014.
THIS ANNOUNCEMENT, INCLUDING INFORMATION CONTAINED HEREIN, IS
RESTRICTED AND IS NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE,
DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED
STATES (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATES OF
THE UNITED STATES AND THE DISTRICT OF COLUMBIA) (COLLECTIVELY, THE
"UNITED STATES"), CANADA, AUSTRALIA, JAPAN OR THE REPUBLIC OF SOUTH
AFRICA OR IN OR INTO ANY OTHER JURISDICTION IN WHICH SUCH
PUBLICATION, DISTRIBUTION OR RELEASE WOULD BE PROHIBITED BY ANY
APPLICABLE LAW.
THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS NOT
AND DOES NOT CONSTITUTE, CONTAIN OR FORM PART OF AN OFFER TO SELL
OR ISSUE OR A SOLICITATION TO BUY, SUBSCRIBE FOR OR OTHERWISE
ACQUIRE, ANY SECURITIES IN THE UNITED STATES, CANADA, AUSTRALIA,
JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN
WHICH ANY SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.
Stirling Industries plc
("Stirling" or the "Company")
Update on proposed acquisition of Ipsen International
Following the announcement of 4 September, in which Stirling
(AIM: STRL.L) confirmed it is in discussions to acquire Ipsen
International GmbH ("Ipsen"), (the "Transaction) the Company has
been exploring a variety of solutions with potential providers of
equity and private capital that would enable the Transaction to
proceed.
Deteriorating capital market conditions, caused by global trade
and geopolitical tensions, have continued to weigh on investor
sentiment, leading many institutional investors to adopt a cautious
stance, such that the Company acknowledges the transaction cannot
be funded through the public markets at this time.
Consequently, the Company is continuing to consider alternative
sources of funding for the Transaction. This would enable it to
implement its plans for Ipsen and/or monetise the considerable due
diligence undertaken on the Transaction in the interests of the
Company's shareholders.
However, in the meantime, the Company is taking steps to reduce
its cost base and, as it does not have the financial resources to
explore further opportunities, is making preparations for the
winding up of the Company with the return of any net proceeds to
shareholders, providing for the eventuality that no deliverable
proposals to support the acquisition of Ipsen emerge in the near
future.
The shares remain suspended pending a further announcement.
Blair Illingworth, Chief Executive, said:
"Having undertaken detailed due diligence on Ipsen, we know it
to be a high-quality business with significant potential to grow,
driven by its world-class technology, engineering capabilities and
diverse geographical revenues. We remain convinced that Ipsen has
an exciting future ahead of it."
This announcement contains inside information for the purposes
of the Market Abuse Regulation (EU) NO. 596/2014. Upon the
publication of this announcement, this inside information is now
considered to be in the public domain. The person responsible for
arranging for the release of this announcement on behalf of
Stirling is Simon Thomas, Chief Operating Officer and Company
Secretary of Stirling.
- Ends -
For more information contact:
Stirling Industries plc
Blair Illingworth, Chief Executive
c/o Montfort Communications +44 (0)78 1234 5205
Montfort Communications - Financial Communications
Olly Scott +44 (0)78 1234 5205
Numis Securities - Nominated Adviser and
Broker
Luke Bordewich
Ben Stoop +44 (0)20 7260 1000
Numis Securities Limited is authorised and regulated by the
Financial Conduct Authority, is acting only for the Company in
connection with the matters described in this announcement and is
not acting for or advising any other person, or treating any other
person as its client, in relation thereto and will not be
responsible for providing the regulatory protection afforded to its
clients or advice to any other person in relation to the matters
contained herein.
About Stirling
Stirling has been established to offer a differentiated
management and ownership approach for industrial businesses where
the strategic and operational expertise of its team combines with
that of the portfolio company's management to drive and enable
improvements that create long-term shareholder value.
The Company focuses on acquiring businesses with strong
fundamentals and enterprise values between GBP100 million and
GBP750 million. Transactions will be financed through a combination
of new equity and prudent leverage, with the Company's target debt
to be no more than 2.5x the Company's EBITDA.
Stirling's approach begins with the belief that many companies
have the potential to achieve material operational enhancement and
margin improvement. Stirling's value add is to ensure operating
assets have the right strategy, the right focused leadership,
empowered and incentivised management teams and the appropriate
capital investment to support growth.
The Company's leadership team has significant experience of
identifying the key value drivers of a given business, implementing
change strategies across a diverse range of industries and
delivering significant operational value creation.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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