RNS Number:7410J
United Energy PLC
28 April 2000
UNITED ENERGY PLC TO BECOME AN INTERNET ACCELERATOR
PROPOSED ACQUISITION OF WEB-ANGEL
PROPOSED APPOINTMENT OF PENNY HUGHES AS CHAIRMAN
The Board of United Energy plc ("United Energy" or the "Company") is pleased
to announce the proposed acquisition of Web Angel Limited Partnership
("web-angel") (the "Acquisition").
* web-angel is an e-business accelerator that advises and resources developing
e-commerce companies. Principally, web-angel provides advisory and consultancy
services to developing e-commerce businesses in the UK and Europe. web-angel
receives equity or rights to equity in such businesses. It may make cash
investments in investee e-commerce companies where appropriate.
* web-angel has been formed specifically to bring together the e-commerce
expertise of three long standing businesses, Ermgassen & Co Limited, OC&C
Strategy Consultants Limited and Brait SA, operating in the financial,
strategic consulting and investment arenas respectively.
* web-angel has a current portfolio of eight equity interests in e-commerce
businesses and intends to expand this portfolio at around 10-20 investments
annually.
* The consideration for the Acquisition is approximately #23.1 million, and
will be satisfied by the issue of 90,747,755 new ordinary shares in United
Energy ("New Ordinary Shares"), representing 70 per cent. of the Company's
enlarged share capital. Further consideration of up to 16 per cent. of the
Company's share capital from time to time may also become payable conditional
upon the achievement of certain performance related criteria over a three year
period.
* In view of the size of the Acquisition, United Energy will be seeking
shareholders' approval for the transaction at an Extraordinary General Meeting
of United Energy to be convened. An explanatory circular will be sent to
shareholders shortly.
* The Directors have decided that United Energy should, conditional on
approval of the Acquisition by United Energy shareholders, request the London
Stock Exchange to cancel its listing on the Official List and apply for
admission to the Alternative Investment Market ("AIM"). As a result of the
proposed transfer to AIM, the listing of United Energy's existing ordinary
shares will remain suspended pending completion of the Acquisition.
* Subject to shareholders' approval, it is intended to change the name of
United Energy to web-angel plc and reconstitute the Board under the
Chairmanship of Penny Hughes. Formerly president of Coca-Cola in the UK and
Ireland, Penny is currently a non-executive director of a number of listed
companies including Vodafone Airtouch plc and Trinity Mirror plc.
John Billington, Chairman of United Energy, said:
"The Board of United Energy believes that the e-commerce sector currently
offers attractive prospects for enhancing shareholder value and that the
acquisition of web-angel will benefit all United Energy's shareholders over
the longer term. I have every confidence in the new management team, and am
delighted that Penny Hughes has agreed to become Chairman when I step down on
completion of the acquisition."
Penny Hughes, Chairman of web-angel, said:
"Our philosophy is to identify and build lasting business partner
relationships with only those companies that we believe fulfil our criteria
for e-business success for the long-term, irrespective of current market
conditions.
"web-angel brings together a team with international expertise in e-business.
Their skills will be applied in sourcing and executing deals in Europe and
building a quality portfolio. This will be assessed constantly, so as to meet
our principal objective of maximising the return for all of our shareholders.
"We believe that our point of difference is an integrated package of strategy
consulting, corporate finance advice and investment expertise in addition to
the personnel and other resources of its founding partners."
Enquiries:
United Energy
Nick Tamblyn, Chief Executive Tel: 01242 253 773
web-angel
Christopher Stainforth, Director Tel: 020 7929 2000
Chris Eyles, Chief Executive Tel: 020 7400 6377
Ernst & Young
John Stephan Tel: 0121 535 2245
Oliver Baker
Bell Pottinger Financial
Bob Gregory Tel: 020 7353 9203
UNITED ENERGY PLC TO BECOME AN INTERNET ACCELERATOR
PROPOSED ACQUISITION OF WEB-ANGEL
PROPOSED APPOINTMENT OF PENNY HUGHES AS CHAIRMAN
Introduction
The Board of United Energy plc ("United Energy" or the "Company") is pleased
to announce the proposed acquisition of Web Angel Limited Partnership
("web-angel") (the "Acquisition"). This will be achieved by acquiring the
entire issued share capitals of each of Ermgassen & Co (Jersey) Limited, OC&C
Strategy Consultants (Jersey) Limited, Brait Capital (Jersey) Limited, Angel
Holdings (Jersey) Limited and Web-Angel GP Limited (the "Target Companies"),
being all of the partners of web-angel, for approximately #23.1 million, which
will be satisfied by the issue of 90,747,755 new ordinary shares in United
Energy ("New Ordinary Shares"), representing 70 per cent. of the Company's
enlarged share capital. Further consideration of up to 16 per cent. of the
Company's share capital from time to time may also become payable conditional
upon the achievement by the enlarged United Energy group (the "Enlarged
Group") of certain performance related criteria over a three year period.
web-angel has been formed specifically to bring together the e-commerce
expertise of three long standing businesses operating in the financial,
strategic consulting and investment arenas. web-angel provides advisory and
consultancy services to investee e-commerce businesses through its wholly
owned subsidiary, web-angel Services Limited, and it receives equity or rights
to equity in such businesses. It may make cash investments in investee
e-commerce companies where appropriate.
The web-angel concept was initiated in the first half of 1999 since when a
team has been established to assess possibilities and begin creating value for
its client businesses. In the period from formation as a limited partnership
on 28 March 2000 to 31 March 2000, web-angel incurred losses arising from
formation costs of #0.3 million and as at that date had net assets of #0.3
million including equity interests in four e-commerce businesses. The net
assets at 31 March 2000 do not include #0.6 million in value of advisory
services that both Ermgassen & Co Limited ("Ermgassen & Co") and OC&C Strategy
Consultants Limited ("OC&C") have contracted to provide to web-angel at no
cost to web-angel. Subsequent to 31 March 2000 web-angel has entered into
agreements to earn four further equity interests in e-commerce businesses. In
addition, further capital subscriptions of approximately #3.2 million have
been received by web-angel.
In view of the size of the Acquisition, United Energy will be seeking
shareholders' approval for the transaction at an Extraordinary General Meeting
of United Energy to be convened. An explanatory circular will be sent to
shareholders shortly.
Background to and reasons for the Acquisition
On 1 June 1999, United Energy's wholly owned subsidiary AmBrit Energy Corp.
disposed of all of its oil and gas assets to Castle Energy Corporation.
Following this disposal, United Energy became a cash company with liquid funds
of approximately #4 million and no remaining trading activities. The Board
has, in accordance with the strategy outlined in the circular relating to the
disposal of the Group's oil and gas interests, been actively pursuing
alternative business opportunities. These have been concentrated principally
in the e-commerce sector, which the Board believes currently offers attractive
possibilities.
Having considered a number of those business opportunities, the Board believes
that the web-angel accelerator approach for earning investments should help
deliver long term enhancement of shareholder value.
Principal terms of the Acquisition
Under the terms of the agreement relating to the Acquisition ("Acquisition
Agreement"), United Energy will acquire the entire issued share capitals of
the Target Companies, which collectively own web-angel, for a consideration of
#23.1 million. This will be satisfied by the issue of the New Ordinary Shares
to the holders of shares in the Target Companies ("web-angel shareholders").
The New Ordinary Shares will rank pari passu with the existing issued shares
of the Company. In addition, subject to the achievement by the Enlarged Group
of certain performance related criteria, further consideration may become
payable, which will be satisfied by the issue of additional ordinary shares in
the Company.
Completion of the Acquisition Agreement is conditional inter alia on approval
of its terms by the Company's shareholders and on admission of all of the
existing issued ordinary shares in the Company and the New Ordinary Shares to
the Alternative Investment Market of the London Stock Exchange ("AIM")
("Admission").
Subject to certain limited exceptions, the web-angel shareholders have agreed
not to dispose of any of their United Energy shares for twelve months
following the Acquisition and thereafter have agreed to be subject to certain
orderly market restrictions for a further twenty four months.
Information on web-angel
web-angel is an e-business accelerator that advises and resources developing
e-commerce companies. Principally, web-angel provides advisory and consultancy
services to developing e-commerce businesses in the UK and Europe.
web-angel receives equity or rights to equity and may also make cash
investments in such businesses. Advisory and consultancy services are
provided through web-angel Services Limited, a company wholly owned and
controlled by web-angel.
web-angel will gain close knowledge of the investee companies by working
alongside them through the "acceleration" process, allowing a comprehensive
review of the opportunities and risks of their propositions and their
potential to generate attractive returns. On this basis, web-angel may make
cash investments in the companies; typically, these investments will fall in
the range #0.3 million to #2 million over the course of the acceleration
process.
web-angel brings together the specialist experience and expertise of its
three founding partners, these being:
* OC&C, a significant international consulting firm with a strong pedigree in
e-business, with offices in Europe as well as in America (OC&C's clients
include British Telecom, Cadbury Schweppes, B&Q and Apax Partners). OC&C's US
partner, The McKenna Group, has over two decades of experience and expertise
in strategy formulation with many of the leading high-tech players in Silicon
Valley (The McKenna Group's clients include Apple, IBM, Intel and 3-Com).
* Ermgassen & Co Limited, a London based corporate finance house with a
pan-European focus, specialising in cross-border corporate finance, private
placements and investments (Ermgassen & Co's clients include Siemens and
Haniel).
* Brait S.A. ("Brait"), is an investment and merchant banking group listed on
the Luxembourg, Johannesburg and London stock exchanges. Brait Capital
Partners, the private equity arm of Brait, has established numerous funds with
commitments in excess of US$650 million, including a US$50 million venture
capital fund dedicated to early high-tech and internet investing.
web-angel is focused on developing and growing a portfolio of businesses at
varying stages of evolution in e-commerce across Europe. At 31 March 2000,
web-angel had equity interests in four e-commerce businesses and by 26 April
2000, this portfolio had increased to eight equity interests. It is intended
to expand this portfolio, subject to suitable investments being identified, at
around 10-20 investments annually.
web-angel only accepts companies with sound, attractive economic credentials
and an anticipated ability to generate strong revenue growth and achieve
sustainable profitability. It advises and resources its investee companies
and receives an equity stake in these companies. For its investee companies,
web-angel provides advice through an integrated service offering on many
aspects of a company's business including the most appropriate way to finance
their corporate plans.
Further information on web-angel and on its current investment portfolio is
set out below.
Cancellation of listing and transfer to AIM
The Directors have decided that United Energy should, conditional on approval
of the Acquisition by United Energy shareholders, request the London Stock
Exchange to cancel its listing on the Official List and apply for Admission to
AIM. As a result of the proposed transfer to AIM, the listing of United
Energy's existing ordinary shares will remain suspended pending completion of
the Acquisition and Admission.
Change of name and Board and management changes
Subject to shareholders' approval, it is intended to change the name of United
Energy to web-angel plc and reconstitute the Board under the Chairmanship of
Penny Hughes. Formerly president of Coca-Cola in the UK and Ireland, Penny is
currently a non-executive director of Berisford plc, Body Shop International
plc, Skandinaviska Enskilda Banken AB, Trinity Mirror plc and Vodafone
Airtouch plc.
Further information on Board and management changes is set out below.
Proposed grant of Option and Employee Incentive Scheme
It is intended to grant to Penny Hughes, the proposed Chairman, an option to
subscribe for up to 2,592,793 ordinary shares, representing 2 per cent. of the
ordinary share capital of the Company following Admission. The option
exercise price will be 31 pence per share and the option will be exercisable
from a date which is 12 months from Admission and for the period of two years
thereafter.
In addition, it is proposed to establish the web-angel Employee Benefit Trust
as a means of incentivising employees of the Enlarged Group. It is proposed
to issue ordinary shares to the trust, subject to the same performance related
criteria as will govern the issue of additional ordinary shares for payment of
further consideration under the terms of the Acquisition Agreement. The
maximum number of ordinary shares which may be issued to the trust is 4 per
cent. of the Company's share capital from time to time.
The City Code on Takeovers and Mergers
The issue of the New Ordinary Shares will result in the web-angel
shareholders, together with persons connected with them, holding in excess of
50 per cent. of the ordinary share capital of the Company following completion
of the Acquisition. The Company has requested that The Panel on Takeovers and
Mergers waive the requirement of the City Code on Takeovers and Mergers which
would require web-angel shareholders, together with persons connected with
them to make an offer for the whole of the issued share capital of United
Energy not already owned by them. Such a waiver will be subject to the
approval by United Energy shareholders of a resolution on a poll.
Capital reorganisation
There will be a capital reorganisation of United Energy details of which will
be set out in an explanatory circular being sent to shareholders. Such
capital reorganisation will be subject to approval by shareholders
(conditional on shareholders' approval of the Acquisition) at an Extraordinary
General Meeting to be convened.
Directors' intentions
The Directors of United Energy, who collectively own approximately 26 per
cent. of the United Energy share capital, will be recommending its
shareholders to vote in favour of the resolutions to be proposed in relation
to the Acquisition as they unanimously intend to do so themselves.
Further information on web-angel
The web-angel concept was initiated in 1999 as a response to the increasing
business opportunities provided by the development of the Internet. The
founders of web-angel were Ermgassen & Co, a corporate finance house, and
OC&C, an international consulting firm, both of which have been extensively
involved in investing in and advising on developing e-businesses. These
founders have since been joined by Brait, an investment and merchant banking
group listed on the Luxembourg, Johannesburg and London stock exchanges. Brait
Capital Partners, the private equity arm of Brait, has established numerous
funds with commitments in excess of US$650 million, including a US$50 million
venture capital fund dedicated to early high-tech and internet investing.
Through its founders, web-angel is able to provide professional advisory and
consultancy services to investee companies in strategy formulation, corporate
finance advice, business plan development, fundraising, and implementation.
web-angel also has access to an international network of offices and skilled
individuals which will enhance deal flow and assist in accelerating value
creation.
Investee companies receive the benefit of practical support from the founders
of web-angel in assessing the feasibility and commercial viability of their
business propositions. Such businesses often suffer from a shortage of
management skills and a need for considerable funding to cover the high costs
of establishing and promoting their technological proposition. web-angel's
founders guide such e-businesses through the formulation of a coherent
business plan and the initial funding process as the skills that they provide
are important to the success of such businesses.
The proposed new directors of United Energy believe that web-angel's business
acceleration strategy is different from other providers of similar services in
that it is able to offer an integrated package of strategy consulting,
corporate finance advice and investment expertise. The McKenna Group has been
operating successfully a similar business model of taking equity stakes in
early stage e-commerce businesses and the simultaneous provision of advisory
services in Silicon Valley in the USA for the past two years. It is through
its links to The McKenna Group and the presence of Geoff Mott (its managing
partner) as a proposed director of web-angel that the Company can benefit from
previous experience of operating such a business model successfully.
The Founders
Ermgassen & Co is a corporate finance house which specialises in cross border
corporate finance transactions, private placements and investments throughout
Europe. Ermgassen & Co has 25 staff based in London. Its position as an
established independent European corporate finance house is founded on the
accumulated experience, skills and networks of its corporate finance
professionals.
Ermgassen & Co has advised many European companies through the cycles of
raising finance, developing businesses through strategic alliances,
acquisitions and disposals and the realisation of value for shareholders via
trade sales and flotations. Ermgassen & Co's advisory clients range from
large international public and private groups such as Siemens and Haniel, to
numerous private and entrepreneurial companies amongst others in the UK,
Germany, Austria, Switzerland, France, Benelux, Italy, Greece and Scandinavia.
OC&C is an international consulting firm operating from offices in Boston,
Dusseldorf, Hamburg, London, Palo Alto, Paris, Rotterdam and Tokyo and through
associated offices in Italy, Eastern Europe and South America. In recent
years OC&C has established a strong pedigree in serving rapidly growing
e-businesses alongside its primary client base of large multi-national
corporations. OC&C has particular expertise in the information technology,
media, telecoms, retailing and consumer goods sectors and an emphasis on the
strategic applications of e-business and internet opportunities. OC&C's
clients include leading corporations such as British Telecom, Cadbury
Schweppes, B&Q and Apax Partners, as well as many new e-business ventures
across Europe.
OC&C's Silicon Valley based partner business, The McKenna Group, has over two
decades of experience of helping companies achieve leadership in markets
opened by new waves of technology. The McKenna Group was instrumental in the
launch of Apple, the development of Intel and 3-Com and in the development of
IBM's e-business strategy. Over the past two years, The McKenna Group has
worked with many US e-business early stage ventures.
Brait is a subsidiary of Brait SA, an investment and merchant banking group
listed on the Luxembourg, Johannesburg and London stock exchanges. It has
established numerous funds with commitments in excess of US$650 million,
including a US$50 million venture capital fund dedicated to early high-tech
and internet investing.
Board and management changes
It is intended that John Billington, Tony Hoskinson and Derek Howard-Orchard
will resign from the Board of United Energy on completion of the Acquisition.
Nick Tamblyn is to remain as finance director of the Enlarged Group.
Following completion of the Acquisition, it is proposed that a number of
individuals will join the Board of United Energy. Details of these people,
together with short summaries of their respective relevant experience, are set
out below.
Penny Hughes, aged 40, Chairman
Penny Hughes was formerly president for the UK and Ireland of the Coca-Cola
Company. She now holds a number of directorships of companies listed on the
London Stock Exchange. She is currently a non-executive director of Berisford
plc, Body Shop International plc, Skandinaviska Enskilda Banken AB, Trinity
Mirror plc and Vodafone Airtouch plc.
Chris Eyles, aged 38, Chief Executive
Chris Eyles is a graduate of Cambridge University and also holds an MBA. He
trained with McKinsey & Co and LEK and in 1996 moved to South Africa when he
formed his own company, Nexus Strategic Consultants and Associates, which
worked in association with Bain & Co. to develop their business in South
Africa. In recent years Chris Eyles has been involved in advising major
commercial organisations in South Africa on technology and e-commerce
projects.
Nick Tamblyn, aged 42, Finance Director and Company Secretary
Nick Tamblyn qualified as a chartered accountant as well as passing his
Institute of Taxation exams with KPMG in Birmingham, following which he worked
in Hong Kong for three years for the firm before returning to the UK and being
appointed a Partner specialising in audit and corporate finance. He joined
the Company in 1992 and is presently Chief Executive and Finance Director.
Conditional upon completion of the Acquisition, he will enter into a revised
service contract as Group Finance Director of the Enlarged Group.
Paul Jessiman, aged 32, Non-Executive
Paul Jessiman, a graduate in commerce and law, qualified as a solicitor in the
United Kingdom, and worked at Clifford Chance in London and later in Hong Kong
on a range of corporate finance transactions. He is currently the chief
executive officer of the Brait Technology and Innovation Fund 1, a South
African fund launched in 1999, and a director of Brait Capital Partners
Limited. He has accumulated substantial experience as a technology investor
and has been engaged in sourcing, negotiating, executing, overseeing and
exiting technology investments at Brait.
Peter Jungen, aged 60, Non-Executive
Peter Jungen is an entrepreneur and is the founder and chairman of Peter
Jungen Holding GmbH, an investment company with interests in various
industrial and service businesses. He holds an MBA from University of
Cologne, Germany. After graduation he joined a large German private group.
He spent 20 years as managing director and later on as chief executive of
STRABAG, one of the largest German civil engineering groups. After a
successful turnaround of this company he started to set up his own
entrepreneurial activities in 1991. He is a member of several boards and
advisory councils of large German financial institutions. He is President of
Business Angels Netzwerk Deutschland and Vice President of European Business
Angels Network. He is also a board member of the New York Philharmonic
Orchestra.
Geoff Mott, aged 47, Non-Executive
Geoff Mott is managing partner of The McKenna Group, which is known in the USA
as an e-business strategy consulting firm and adviser to start-up and young
internet businesses, in which it frequently takes equity stakes. He has been
actively involved in The McKenna Group's decisions concerning the selection of
clients in which The McKenna Group has taken equity positions as part of its
arrangements with those clients, and thus in the building of a portfolio of
investments in technology and internet businesses, at stages ranging from
start-up to pre-flotation.
Chris Outram, aged 51, Non-Executive
Chris Outram is Chairman of OC&C. He has 20 years' experience of advising
clients on their long-term strategies, investment and mergers and
acquisitions, gained with Boston Consulting Group, Booz Allen and Hamilton and
OC&C. He holds an MBA with distinction from INSEAD. More recently he has
been advising US and European businesses on e-business strategies.
Christopher Stainforth, aged 46, Non-Executive
Christopher Stainforth is a director of Ermgassen & Co and a chartered
accountant having qualified with KPMG in 1975. He moved into corporate
finance in 1980 when he joined Schroders before moving to Phillips & Drew
(latterly UBS Phillips & Drew) where he was Deputy Managing Director of
Corporate Finance. Christopher Stainforth was with Guinness Mahon Henderson
Crosthwaite until early 1999 where he was Joint Managing Director from where
he joined Ermgassen & Co in May 1999. He has over 25 years of experience of
advising businesses ranging from FTSE 100 companies to early stage companies
on all aspects of corporate finance and fundraising.
The principal revisions to the terms of Nick Tamblyn's service contract
include a change in his job title to Group Finance Director and changes to the
confidentiality and restrictive covenants to protect the goodwill of the
Enlarged Group. In addition his bonus entitlement has been varied as have the
provisions relating to the termination of employment.
web-angel Services Limited will enter into a service agreement with Penny
Hughes (the chairman-elect) and has entered into a service agreement with
Chris Eyles (the chief-executive elect). These service agreements are
conditional upon completion of the Acquisition. Penny Hughes' service
agreement is terminable by either party by giving to the other twelve months'
written notice expiring not earlier than the first anniversary of the date of
the agreement. Penny Hughes will be required to work such time as required
and will receive a salary of #100,000 per annum. Chris Eyles' service
agreement is for a fixed term of two years and eleven months but may be
terminated by either party giving to the other at any time twelve months'
written notice. Chris Eyles will be required to work full time for the group
and will also receive a salary of #100,000 per annum. Each service agreement
contains the usual restrictive covenants protecting the goodwill of the group.
Current investment portfolio
web-angel has the following eight investments or rights to investments. It is
intended to expand this portfolio, subject to suitable investments being
identified, at around ten to twenty investments annually.
Ascot Drummond Limited
Ascot Drummond Limited provides web-based accountancy services to small and
micro businesses. It operates as an outsourced accountancy function,
executing invoicing, bill payment, banking and other relevant transactions.
It provides a customer with 24 hour access to their company accounts via
intuitive web browser and proprietary software. It has targeted independent
IT Contractors as its initial target customer group.
Brand Offers
Brand Offers is a web-based promotions and direct marketing business being
developed to take advantage of the anticipated rapid growth in this area of
activity on the web. It aims to build and maintain an extensive consumer user
base to which it will promote and market its corporate customers' products and
services.
CoreCollector.com
CoreCollector.com incorporates an established auction house based in
Switzerland. It is a world leader in the field of philately and it is using
the scalability of the Internet as a medium to apply its operating model in
the adjacent fine art and collectibles markets, such as coins.
CoreCollector.com is well positioned to scale up rapidly its auction
activities as it owns custom built infrastructure and fulfilment facilities
for large auctions in fine art and collectibles.
CoreCollector.com has been building its own Internet infrastructure since mid
1999 and is currently launching its e-commerce platforms and portals. These
have been designed to exploit the technological advances of the Internet and
global reach and application of e-commerce whilst remaining firmly anchored in
the market practices of the philatelic, coin and art markets.
DELSY Electronic Components AG
DELSY Electronic Components AG ("DELSY") produces a unique fingerprint
identification system the prime use of which will be in e-commerce security.
The management of DELSY believes that DELSY(R) is the technologically most
advanced fingerprint security product developed to date and that it has the
potential to become the first universally usable and commercially viable
product of its type. The DELSY(R) system has been introduced successfully
in a number of locations in access control security and DELSY has teamed with
Robert Bosch GmbH to develop the DELSY(R) sensor for applications in the
automotive sector.
The prime application of the DELSY(R) system is expected to be in e-commerce
security and DELSY is currently negotiating to secure production for over 5
million sensors to be used in systems in internet banking and computers.
Information Superhighway Limited
Information Superhighway Limited ("Infosh") is an internet-enabled,
business-to-business service provider of consumer and business magazine
subscription marketing services to the publishing industry. It will operate
initially in the UK and subsequently on a global basis, through its developing
website.
Infosh was conceived and initially funded by investors with many years
experience in the publishing area, both consumer and business-to-business.
Infosh intends to bring significant revenue and cost benefits to the
publishing supply chain participants. The company is in the process of
building an extensive proprietary database from which customers may purchase
magazine subscriptions to general and specific interest publications. In close
co-operation with publishers and fulfilment houses Infosh will initially
provide a business to business service for magazine publishers to manage the
process of securing and managing subscriptions.
MiNetwork Limited
MiNetwork Limited's proposition is to provide an online marketplace for the
buying and selling of medical equipment and other health related products to
hospitals.
OC&C's research estimates that hospitals consume approximately #4.5 billion
worth of goods each year in the UK and the current procurement and supply
structure for these goods is complex and inefficient. The average NHS Acute
Trust has 200 to 300 individuals involved in some way in the purchasing
process and is supplied by some 2,500 suppliers.
MiNetwork Limited will provide a resource for individuals involved in the
purchasing process to identify and research products for purchase and an
efficient mechanism for purchasing these items. Revenue flows will be
primarily from commission on the sales of these goods, but also potentially
from commission on stock auctions, site hosting and advertising. Expressions
of interest have already been received from a large number of hospitals and
suppliers.
Online Medical Conferences Limited
Online Medical Conferences Limited is a resource for identifying, researching
and booking medical conferences on the internet.
OC&C's research shows that there are more than 20 million medical conference
places that are booked world-wide each year with a global market worth in
excess of $5 billion. Current organisation of medical conferences is
fragmented with more than 50 per cent. of conferences being organised on a
one-off basis.
Online Medical Conferences Limited have constructed one of the single largest
databases of medical conferences world-wide which contains information on over
6,000 planned medical conferences. The Online Medical Conferences business
model is based on commission charged to conference organisers for attracting
and booking delegates onto conferences as well as commission charged on travel
and accommodation services sold in parallel. Initial site development is
complete and the continual addition of enhanced features to the site coupled
with on-going database build will ensure that Online Medical Conferences is a
comprehensive site for the medical conference attendees on the internet.
ShoppingGate.com AG
ShoppingGate.com AG is a European Internet Shopping portal and as an ASP
(Application Service Provider) offers an integrated solution for small and
medium enterprises ("SMEs") throughout Western Europe that wish to enter into
the world of e-commerce.
Today, ShoppingGate.com AG employs 22 people in Switzerland. Making use of
strategic partnerships, ShoppingGate.com AG is assisted by IT specialists for
technological development, logistical corporations for storage and
distribution, banks and financial institutions for on-line payments.
ShoppingGate.com AG enables SMEs to participate on the Internet in an
environment which is attractive for the end-user. In addition, it offers
"full service" solutions for shop structuring, mall placement and the
international processing of payments and logistics for the consumer.
ShoppingGate.com AG gives SMEs the opportunity to develop online shops in
regional malls which are connected to national portals and a pan-European
portal. This means that local European products can be offered simultaneously
in the local as well as global markets thanks to e-commerce.
ShoppingGate.com AG revenue will come from transaction fees for payments,
licences and leasing fees arising from agreements with SMEs, franchising fees
and income from advertising and promotional campaigns.
Circular
An explanatory circular will be sent to shareholders shortly.
Ernst & Young, which is authorised by The Institute of Chartered Accountants
in England and Wales to carry on investment business, is acting for United
Energy and no one else in connection with the Acquisition and, accordingly,
will not be responsible to anyone other than United Energy for providing the
protections afforded to clients of Ernst & Young nor for providing advice in
relation to the Acquisition.
Ernst & Young is acting as United Energy's nominated adviser in connection
with the proposed admission of the Company's shares to AIM. Its
responsibilities as the Company's nominated adviser under the AIM Rules are
owed solely to the London Stock Exchange and are not owed to the Company or to
any Director or proposed new director or to any other person in respect of his
decision to acquire shares in the Company in reliance on any part of this
document. No representation or warranty, express or implied, is made by Ernst
& Young as to any of the content of this document (without limiting the
statutory rights of any person to whom this document is issued). Ernst &
Young will not be offering advice and will not otherwise be responsible for
providing customer protections to recipients of this document in respect of
the acquisition of shares in the Company.
END
ACQUBAORRWRSUUR
Urals Energy (LSE:UEN)
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Urals Energy (LSE:UEN)
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