Imaginatik PLC Update on strategic review and formal sale process (3473I)

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RNS Number : 3473I

Imaginatik PLC

21 March 2018

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION 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

21 March 2018

Imaginatik PLC ("Imaginatik" or the "Company")

Update on strategic review and formal sale process

On 1 February 2018, the Company announced the commencement of a strategic review, which included a potential sale of the Company conducted within the formal sale process framework (as set out in Note 2 of Rule 2.6 of the City Code on Takeovers and Mergers (the "Takeover Code")).

The Board of Imaginatik is pleased to provide an update to shareholders.

Following the announcement of 1 February, the Company has received approaches, directly and through potential buyers contacted by RSM & Co (UK) Limited ("RSM") as financial adviser to the Company. Potential buyers wishing to participate in the formal sale process were required to sign a non-disclosure agreement, after which they received further information on the Company. Potential buyers then submitted proposals to RSM for the Board's consideration.

As a result, the Board is now engaged in detailed discussions with certain parties about the sale of the Company, with the aim of announcing the outcome of the process by the end of May.

As previously announced, The Takeover Panel has granted a dispensation from the requirements of Rules 2.4(a), 2.4(b) and 2.6(a) of the Takeover Code such that any interested party participating in the formal sale process will not be required to be publicly identified as a result of this announcement and will not be subject to the 28 day deadline referred to in Rule 2.6(a) of the Takeover Code for so long as it is participating in the formal sale process.

There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made.

The Board of Imaginatik reserves the right to alter or terminate the process at any time and in such cases will make an announcement as appropriate. The Board of Imaginatik also reserves the right to reject any approach or terminate discussions with any interested party at any time.

Trading update

As with previous years, the Company will look to provide an update on its annual performance for the year ending 31 March 2018 towards the end of April.

Rule 26.1 disclosures

A copy of this announcement will be made available (subject to certain restrictions relating to persons resident in restricted jurisdictions) on Imaginatik's website at www.imaginatik.com by no later than 12 noon (London time) on the business day following the release of this announcement in accordance with Rule 26.1 of the Code. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

For further information, please contact:

   Imaginatik plc                                                             [phone] 

Matt Cooper, Non-Executive Chairman

Ralph Welborn, CEO

Shawn Taylor, CFO

   RSM & Co (UK) Limited - Financial Adviser          [phone] 

James Lewis

   finnCap Ltd - Nomad and broker                              [phone] 

Jonny Franklin-Adams

   Alma PR                                                                      [phone] 

Caroline Forde

Robyn Fisher

RSM & Co (UK) Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for Imaginatik in connection with the matters set out in this announcement and for no one else and will not be responsible to anyone other than Imaginatik for providing the protections afforded to its clients or for providing advice in relation to the matters set out in this announcement.

finnCap Ltd ("finnCap"), which is regulated in the United Kingdom by The Financial Conduct Authority, is acting for the Company in relation to the matters described in this announcement and is not advising any other person, and accordingly will not be responsible to anyone other than the Company for providing the protections afforded to clients of finnCap or for providing advice in relation to the matters described in this announcement.

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 whether pursuant to this announcement or otherwise.

The distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe, such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities law of any such jurisdiction.

Notes to Editors

Imaginatik provides a range of Innovation solutions comprised of consultancy, enterprise software and program management to deliver innovation results to companies such as Exxon Mobil, Altria, Shell, Goodyear, Caterpillar, AECOM, Novartis and Cargill, and via its strategic partnership programme. Few companies possess the internal capability to consistently generate fresh ideas, identify those worth pursuing and reliably transform them into real, value-enhancing assets. Imaginatik's mission is to help these companies build sustainable innovation competencies. In 2016 Forrester Research found that "Imaginatik has the most comprehensive innovation management solution," providing excellent industry recognition of Imaginatik's full-service innovation offering, combining both technology and consultancy services.

Imaginatik is a public company whose shares are traded on the AIM market of the London Stock Exchange (LSE: IMTK.L) with offices in Boston, MA, and Fareham, UK.

Opening Position Disclosure amendment

Further to the opening position disclosure made by the Company on 1 February 2018, the Company confirms that Shawn Taylor holds 851,851 ordinary shares in the Company (0.38 per cent. of Imaginatik's existing ordinary shares) rather than 851,852 as previously disclosed.

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 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th 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(s), save to the extent that these details have previously been disclosed under Rule 8 of the Takeover Code. 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 of the Takeover Code.

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 of the Takeover Code).

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 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. You should contact the Panel's Market Surveillance Unit on [phone] if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

This information is provided by RNS

The company news service from the London Stock Exchange

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March 21, 2018 03:00 ET (07:00 GMT)