Sovereign Housing Capital Plc Board's Recommend a Merger (4161B)

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RNS Number : 4161B

Sovereign Housing Capital Plc

16 June 2016

Sovereign Housing Capital plc

16 June 2016

Sovereign and Spectrum Housing Group Boards Recommend a Merger

Sovereign Housing Association Board and Spectrum Housing Group Board held Special Board Meetings yesterday. They agreed to recommend to shareholders a proposal to merge Sovereign Housing Association and Spectrum Housing Group into a single organisation by the process of amalgamation. This would result in a new 56,000-home organisation dedicated to delivering a quality service in the South and South West of England.

The Boards of Sovereign Housing Association and Spectrum Housing Group are recommending this merger based upon a balanced evaluation of the proposed business plan for the amalgamated organisation and upon on an exhaustive due diligence process. These have shown that a merger would be based upon sound business efficiencies to be gained, and that no material adverse risks have been identified. This recommendation will be made subject to both Boards obtaining the required consents including Regulatory approval and reaching an acceptable agreement with lenders with whom discussions are progressing.

Notes

-- Sovereign refers to Sovereign Housing Association which comprises of a Group of companies a member of which is Sovereign Housing Capital plc which is a special purpose vehicle established for the purpose of incurring indebtedness and lending the proceeds thereof to members of the Group.

-- Sovereign Housing Association is one of the largest housing associations in the south and south west of England, owning and managing more than 38,000 homes. It offers a wide range of affordable housing options, as well as now adding private market rent and outright sale to its portfolio.

-- Sovereign Housing Association is charitable and includes the non-charitable Sovereign Living Limited, one of the south's leading affordable home ownership providers.

-- Spectrum Housing Group owns and manages around 18,000 homes across the south and south west of England. It also maintains a further 45,000 homes through its maintenance company, Spectrum Property Care.

-- Spectrum provides new homes for sale and shared ownership through Spectrum Premier Homes as well as keyworker accommodation. Spectrum Housing Group is a non-profit organisation.

ENDS

For further questions or enquiries on this announcement, please contact:

Shane Egan

Interim Head of Governance

[e-mail]

Mob: [phone]

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This information is provided by RNS

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June 16, 2016 07:09 ET (11:09 GMT)