Tangent Holdings UK Limited De-Listing and Final Extension of Increased Offer (4202W)

TIDMTNG

RNS Number : 4202W

Tangent Holdings UK Limited

26 April 2016

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

For immediate release

26 April 2016

RECOMMENDED MANDATORY INCREASED CASH OFFER

for

TANGENT COMMUNICATIONS PLC

by

TANGENT HOLDINGS UK LIMITED

DE-LISTING AND FINAL EXTENSION OF INCREASED OFFER - SHAREHOLDERS ADVISED TO ACCEPT IMMEDIATELY

   1             SUMMARY 

Tangent Holdings UK Limited ("Bidco") is pleased to announce that it has received valid acceptances of the Increased Offer and acquired Tangent Shares in respect of an aggregate of 248,400,795 Tangent Shares, representing approximately 88.26 per cent. of the shares to which the Increased Offer relates.

Bidco confirms that cancellation of trading in Tangent Shares on AIM is expected to occur at 7.00 a.m. tomorrow, 27 April 2016. Accordingly, Bidco urges Tangent Shareholders who have not yet accepted the Increased Offer to do so immediately. There will be significantly reduced liquidity and marketability in Tangent Shares following cancellation of trading.

The procedure for accepting the Increased Offer is summarized below and set out in full in the Increased Offer Document.

   2             INTRODUCTION 

It was announced on 10 February 2016 that the board of Bidco and the independent directors of Tangent Communications PLC ("Tangent") had reached agreement on the terms of a recommended cash offer (the "Original Offer") at 2.25 pence per Tangent Share (the "Original Offer Price"), to be made by certain members of the management team of Tangent (acting through Bidco), for the whole of the issued and to be issued share capital of Tangent. On 12 February 2016 Bidco published an offer document setting out the full terms and conditions of the Original Offer (the "Original Offer Document").

On 4 March 2016, Bidco announced a mandatory increased cash offer for the entire issued and to be issued share capital of Tangent under which Tangent Shareholders are entitled to receive 4.0 pence for each Tangent Share (the "Increased Offer"). The revised offer document was published and sent to Tangent Shareholders by Bidco on 8 March 2016 (the "Increased Offer Document").

On 10 March 2016, the Increased Offer was declared unconditional in all respects and Bidco announced that the Increased Offer would remain open for acceptances until 24 March 2016 (or such later date as Bidco may determine). The Increased Offer was further extended until 1.00 p.m. on 26 April 2016.

   3             Acceptances AND PURCHASES 

Summary of acceptances and market purchases

As at 1.00 p.m. on 26 April 2016, Bidco had received valid acceptances of the Increased Offer in respect of 181,813,870 Tangent Shares, representing approximately 64.60 per cent. of the shares to which the Increased Offer relates.

In addition, Bidco has acquired an aggregate of 66,586,925 Tangent Shares, representing approximately 23.66 per cent. of the shares to which the Increased Offer relates, through market purchases which have now settled.

In total, Bidco has therefore received valid acceptances of the Increased Offer in respect of, or has acquired, 248,800,795 Tangent Shares, representing approximately 88.26 per cent. of the shares to which the Increased Offer relates.

Further information

Of the valid acceptances received before 1.00 p.m. on 26 April 2016:

-- in aggregate, acceptances in respect of 107,385,971 Tangent Shares comprised acceptances by persons from whom Bidco has procured an irrevocable commitment to accept the Offer or by persons acting in concert with Bidco (representing, in aggregate, approximately 38.16% of the shares to which the Increased Offer relates);

-- acceptances in respect of 107,385,971 Tangent Shares comprised acceptances by persons from whom Bidco has procured an irrevocable commitment to accept the Offer (representing approximately 38.16% of the shares to which the Increased Offer relates); and

-- acceptances in respect of 92,411,741 Tangent Shares comprised acceptances by persons acting in concert with Bidco (representing approximately 32.84% of the issued share capital of Tangent), all of which shares were held by persons who had given irrevocable commitments to accept the Offer.

   4             Cancellation of admission to trading on AIM 

Cancellation of trading in Tangent Shares on AIM will take effect on or shortly after 7.00am (London time) tomorrow, 27 April 2016. Cancellation will significantly reduce the liquidity and marketability of any Tangent Shares not assented to the Increased Offer at that time.

If Bidco receives valid acceptances of the Increased Offer in respect of in excess of 90% of the shares to which the Increased Offer relates, Bidco intends to apply the provisions of sections 979-991 (inclusive) of the Companies Act to acquire compulsorily, on the same terms as the Increased Offer, any outstanding Tangent Shares to which the Increased Offer relates.

Tangent may also be re-registered as a private limited company in due course.

   5             BOARD CHANGES 

In accordance with their intentions as set out in the Original Offer Document and the Revised Offer Document, Kevin Cameron and Nigel Kissack will resign from the Board of Tangent with effect from tomorrow. Kevin Cameron will continue in his current role within Tangent's executive management team. The Bidco Directors thank Nigel for his contribution to Tangent during his tenure.

   6             FINAL CLOSING DATE 

The Increased Offer, which remains subject to the terms set out in the Revised Offer Document, will remain open for acceptances until 1.00pm on 9 May 2016. However, in light of the cancellation of trading in Tangent Shares on AIM and Bidco's intention to compulsorily acquire the remaining Tangent Shares if sufficient acceptances are received, Tangent Shareholders are urged to accept the Increased Offer immediately.

The acceptance period for the Increased Offer will not be further extended beyond 1.00pm on 9 May 2016.

   7             ACTION TO BE TAKEN 

Tangent Shareholders who have not yet accepted the Increased Offer are urged to do so as soon as possible. To do so:

-- Tangent Shareholders who hold their Tangent Shares in certificated form (that is, not in CREST) should complete and return the Form of Acceptance which accompanied the Original Offer Document or the revised Form of Acceptance which accompanied the Increased Offer Document.

-- Tangent Shareholders who hold their Tangent Shares in uncertificated form (that is, in CREST) should ensure that an Electronic Acceptance is made by them or on their behalf and that settlement occurs. Tangent Shareholders who hold their Tangent Shares as a CREST sponsored member should refer to their CREST sponsor as only their CREST sponsor will be able to send the necessary instructions to Euroclear.

   8             Disclosure of Interests 

At the close of business on 25 April 2016, being the latest practicable date before this announcement:

-- The persons acting in concert with Bidco (including, without limitation, the directors of Bidco together with their close relatives and related trusts and other Interested Persons) were interested, in aggregate, in 92,669,165 Tangent Shares, representing approximately 32.93% of Tangent's issued share capital. Nicholas Green and Timothy Green each have a right to subscribe for 850,978 Tangent Shares under Tangent's Enterprise Management Incentive Share Option Plan;

-- There are no persons with whom Bidco or any person acting in concert with Bidco had any arrangement (including any indemnity or option arrangement), agreement or understanding, formal or informal, of whatever nature relating to relevant Tangent securities which may be an inducement to deal or refrain from dealing; and

-- Neither Bidco nor any person acting in concert with Bidco had any short position in any Tangent Shares (whether conditional or absolute and whether in the money or otherwise) including any short position under a derivative, in Tangent Shares, nor any arrangement in relation to any Tangent Shares, nor had Bidco or any person acting in concert with Bidco borrowed or lent any relevant Tangent securities.

   9             General 

Terms and expressions used in this announcement shall, unless otherwise defined herein and save as the context otherwise requires, have the meanings given to them in the Increased Offer Document dated 8 March 2016.

All percentages of voting rights, issued share capital and the shares to which the Increased Offer relates are stated by reference to the entire issued share capital of Tangent, including the 3,572,934 treasury shares, being an aggregate of 281,429,851 Tangent Shares.

WH Ireland, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority is acting for Bidco in connection with the Increased Offer and no-one else and will not be responsible to anyone other than Bidco for providing the protections afforded to customers of WH Ireland or for providing advice in relation to the Increased Offer.

Please note that addresses, electronic addresses and certain other information provided by Tangent Shareholders and other relevant persons for the receipt of communications from Tangent may be provided to an offeror as required under Section 4 of Appendix 4 to the Takeover Code.

(MORE TO FOLLOW) Dow Jones Newswires

April 26, 2016 11:56 ET (15:56 GMT)

Any person who has received this announcement in electronic form or by means of a website publication may request a copy of this announcement in hard copy form and may request that all future documents, announcements and information sent to him in relation to the Increased Offer be in hard copy form. Unless so requested, a hard copy of this announcement will not be sent to you. This announcement and all future documents, announcements and information can be requested in hard copy form (free of charge), by submitting a request in writing to the Company Secretary, Tangent Communications PLC, Threeways House, 40-44 Clipstone Street, London W1W 5DW or by calling the company secretary Jamie Beaumont on [phone].

 
 Enquiries: 
---------------------------------  ----------- 
 Tangent Holdings UK Limited        +44(0) 20 
  Jamie Beaumont / Tim Green         7462 6101 
---------------------------------  ----------- 
 WH Ireland (Financial Adviser 
  to Bidco)                         +44(0) 20 
  Adrian Hadden / James Bavister     7220 1666 
---------------------------------  ----------- 
 

Further information

This announcement is not intended to, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the Increased Offer or otherwise. The Increased Offer will be made solely by means of the Increased Offer Document and the revised Form of Acceptance accompanying the Increased Offer Document, which will contain the full terms and conditions of the Increased Offer, including details of how the Increased Offer may be accepted. Any response to the Increased Offer should be made only on the basis of information contained in the Increased Offer Document. Tangent Shareholders are advised to read the formal documentation in relation to the Increased Offer carefully.

Overseas territories

The distribution of this announcement in jurisdictions other than the United Kingdom may be restricted by law and the ability of Tangent Shareholders who are not resident in the United Kingdom to participate in the Increased Offer may be affected by the laws of the relevant jurisdictions. Therefore any persons who are subject to the law of any jurisdiction other than the United Kingdom should inform themselves about, and observe, any applicable requirements.

This announcement has been prepared for the purposes of complying with English law and the Takeover Code and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws of jurisdiction outside of England and Wales. This announcement should not be forwarded or transmitted in or into any jurisdiction in which such act would constitute a violation of the relevant laws in such jurisdiction.

Further information in relation to Overseas Shareholders is set out in the Increased Offer Document.

Forward-looking statements

This announcement may contain "forward-looking statements" concerning the Tangent Group and the Bidco Group. Generally, the words "anticipate", "believe", "estimate", "expect", "forecast", "intend", "may", "plan", "project", "should" and similar expressions identify forward-looking statements. Such statements reflect the relevant company's current views with respect to future events and are subject to risks and uncertainties that could cause the actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond the companies' abilities to control or estimate precisely, such as changes in general economic and business conditions, changes in currency exchange rates and interest rates, lack of acceptance of new exchange rates and interest rates, introduction of competing products or services, lack of acceptance of new products or services, changes in business strategy and the behaviour of other market participants and therefore undue reliance should not be placed on such statements. Neither Tangent nor Bidco intends or assumes any obligation to update these forward-looking statements other than as required by law.

Dealing disclosure requirements

Under Rule 8.3(a) of the Takeover Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10(th) Business Day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10(th) Business Day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Takeover Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the Business Day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at http://www.thetakeoverpanel.org.uk/, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. If you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure, you should contact the Panel's Market Surveillance Unit on [phone].

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCEASLKASDKEFF

(END) Dow Jones Newswires

April 26, 2016 11:56 ET (15:56 GMT)