Update re discussions with major shareholder (0688E)

TIDMDAV

RNS Number : 0688E

Davenham Group PLC

01 April 2011

1 April 2011

Davenham Group plc

("Davenham" and, together with its subsidiaries, the "Group")

Update re discussions with major shareholder

On 23 February 2011 Davenham announced that it had entered into an exclusivity and standstill agreement (the "Exclusivity Agreement") with Davenham's largest shareholder Kingswood Property Finance Limited Partnership ("Kingswood"), Moor Park Capital Partners LLP ("Moor Park Capital") and the members of the Group's Banking Syndicate (the "Banking Syndicate"), in order to permit more detailed discussions to take place in relation to the potential reconstruction of the Group to enable one or more of its divisions to recommence writing new business.

That Exclusivity Agreement expired on 31 March 2011 and, whilst the discussions with Kingswood have not ceased, there remains no certainty as to whether these will lead to an agreement on a potential reconstruction of the Group.

The Board wishes to reiterate its view that, even if Kingswood and the Banking Syndicate reach agreement on a potential restructuring of the Group, it is likely that there will be no value for shareholders' current shareholdings in Davenham.

Further announcements will be made as appropriate.

For further information please contact:

 
 Davenham Group plc                                 0161 832 8484 
  Paul Burke, Group Managing Director          www.davenham.co.uk 
 Hawkpoint Partners Limited (Nominated 
  Adviser) 
  Lawrence Guthrie / Shaun Holmes                   020 7665 4642 
 MHP                                      07884 494112 / 020 3128 
  Katie Hunt/Reg Hoare                                       8100 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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