REG - ASOS PLC - Issue of Equity
25/05/2023 18:00
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RNS Number : 7279A ASOS PLC 25 May 2023
THIS ANNOUNCEMENT (INCLUDING THE APPENDIX) AND THE INFORMATION HEREIN , IS
RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE, TRANSMISSION, DISTRIBUTION, OR
FORWARDING DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED
STATES, AUSTRALIA, CANADA, THE REPUBLIC OF SOUTH AFRICA, JAPAN OR ANY OTHER
JURISDICTION IN WHICH SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE
UNLAWFUL.
FURTHER, THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND IS NOT AN
OFFER OF SECURITIES IN ANY JURISDICTION.
PLEASE SEE THE IMPORTANT NOTICES AT THE END OF THIS ANNOUNCEMENT.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.
For immediate release
25 May 2023
ASOS plc
("ASOS" or the "Company")
New Financing Arrangements & Equity Raise
ASOS, the global online fashion platform, today announces another important
milestone in its "Driving Change agenda" with the strengthening of its balance
sheet through a new long-term £275 million financing facility alongside a
fully underwritten non-pre-emptive cash placing of new ordinary shares to
raise proceeds of c.£75 million.
This new capital structure provides increased flexibility against a
challenging macro-economic backdrop and the stability to focus on long-term
value creation. The new asset-based financing facility provides simplicity
under a single lender and is covenant light.
Further details of the New Financing Arrangements
The Company has entered into a £200 million senior term loan and a £75
million super senior revolving facility (the "New Facilities") with specialist
lender Bantry Bay Capital Limited through to April 2026, with the optionality
to further extend. The New Facilities will replace the existing £350 million
revolving credit facility (the "Existing RCF") which was due to expire in
November 2024 following the amendment and extension announced alongside the
Company's interim results on 10 May 2023.
The New Facilities are subject only to a minimum liquidity covenant. The
Company estimates an average annual interest rate of c.11 per cent on the New
Facilities and c.5 per cent across its total facilities(1). The Company's
total cash financing cost to be incurred in H2 FY23 is now expected to be
c.£55 million(2).
Further details of the Equity Raise
As part of its long-term financing arrangement, ASOS announces its intention
to conduct an equity raise (the "Equity Raise"), comprising a fully
underwritten non-pre-emptive cash placing of c.£75 million (the "Placing")
and a separate retail offer of up to £5 million (the "Retail Offer") of new
ordinary shares at a price of 418.1 pence per share, representing the closing
price of the shares on 25 May 2023 (the "Issue Price"). The Retail Offer will
be made using the PrimaryBid platform.
Aktieselskabet Af 5.5.2010 and Camelot Capital Partners, the Company's two
largest shareholders, as well as I.G.Y. Limited(3) have each confirmed their
intention to significantly participate in the Equity Raise and have provided
underwriting commitments that will, together, cover the full amount of the
Placing, reflecting their confidence in the long-term prospects of the
business (the "Shareholder Commitments").
The Placing will be conducted through an accelerated bookbuild (the
"Bookbuild") which will be launched immediately following the release of this
announcement. J.P. Morgan Securities plc, which conducts its UK investment
banking activities as J.P. Morgan Cazenove ("J.P. Morgan" or "JPMC") and Numis
Securities Limited ("Numis") are acting as joint global coordinators (the
"Joint Global Coordinators"). Joh. Berenberg, Gossler & Co. KG, London
Branch ("Berenberg") together with the Joint Global Coordinators are acting as
joint bookrunners (together, the "Managers") in connection with the Placing.
The Board supports the Pre-Emption Group guidance that encourages companies to
consider the inclusion of retail shareholders when issuing shares
non-pre-emptively and, accordingly, the Board determined to offer retail
shareholders an opportunity to participate in the Equity Raise. The Retail
Offer is not subject to the terms and conditions set out in the Appendix to
this announcement and instead a separate announcement will be made regarding
the Retail Offer and its terms and the new ordinary shares issued pursuant to
the Retail Offer (the "Retail Offer Shares").
ASOS acknowledges that it is seeking to issue new ordinary shares up to c.20
per cent of its existing issued ordinary share capital on a non-pre-emptive
basis. The Board has chosen this structure to minimise costs and reduce the
time to completion of the Equity Raise as part of the broader refinancing, as
well as incorporating a Retail Offer alongside the non-pre-emptive issue to
broaden participation in the Equity Raise as a whole.
Reasons for the Equity Raise
Alongside its FY22 results, ASOS set out a number of changes to its operating
model designed to return the business to sustainable profitability and cash
generation in H2 FY23 and beyond (the "Driving Change agenda").
The Driving Change agenda is structured around four pillars:
1. Renewed commercial model: comprehensively changing ASOS' approach to
buying and merchandising, with improved stock management discipline and
reduced complexity across its supply chain;
2. Stronger order economics and a lighter cost profile: optimising the
cost base, improving order economics and maximising operating model efficiency
to ensure a sustainable level of profitability and cash generation in all
markets;
3. Robust and flexible balance sheet: ensuring a more effective allocation
of capital, while continuing with strategic investment into the customer
experience. In addition, ensuring sufficient financial headroom to provide
flexibility and stability to the business;
4. Reinforced leadership and refreshed culture: simplifying ASOS'
decision-making processes, developing a culture of innovation across the
business, and reinforcing the senior leadership team with strategic key hires.
As highlighted in the interim results announcement on 10 May 2023, the Driving
Change agenda is progressing as planned with positive adjusted earnings before
interest and tax ("EBIT")(4) and a free cash inflow expected in the second
half of the year despite challenging trading conditions(5).
The Company believes that the combination of: (1) the new longer term
financing facility; (2) the Equity Raise; and (3) actions taken by the Company
under its Driving Change agenda culminating in a return to sustainable
profitability and cash generation, create a stable base for ASOS' continued
execution of its strategy and future return to growth.
The Board's unanimous view is that the Placing and Retail Offer are in the
best interests of shareholders, as well as wider stakeholders in ASOS.
Details of the Placing
The Managers will commence the bookbuilding process immediately following the
release of this Announcement in respect of the Placing. Shares to be issued in
the Placing (the "Placing Shares") are to be placed at the Issue Price, being
418.1 pence per share.
The Placing is subject to the terms and conditions set out in Appendix 1 to
this announcement (which forms part of this announcement, such announcement
and its Appendix together being this "Announcement").
The book will open with immediate effect following this Announcement. The
timing of the closing of the book and allocations are at the absolute
discretion of the Joint Global Coordinators and the Company.
The Placing Shares and the Retail Offer Shares when issued, will be fully paid
and will rank pari passu in all respects with each other and with the existing
ordinary shares of the Company, including, without limitation, the right to
receive all dividends and other distributions declared, made or paid after the
date of issue.
Applications have been made for the Placing Shares and Retail Offer Shares to
be admitted to the premium listing segment of the Official List of the
Financial Conduct Authority (the "FCA") and to trading on the main market for
listed securities of the London Stock Exchange plc (the "London Stock
Exchange") (together "Admission"). It is expected that settlement for the
Placing Shares and the Retail Offer Shares and Admission will take place at or
around 8.00 a.m. (London time) on 31 May 2023.
The Placing is conditional upon, among other things, Admission becoming
effective. The Placing is also conditional upon the placing agreement between
the Company and the Managers (the "Placing Agreement") not being terminated in
accordance with its terms. The Appendix to the Announcement sets out further
information relating to the terms and conditions of the Placing.
This Announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation EU 596/2016 as it forms part of UK law by virtue
of the European Union (Withdrawal) Act 2018. The person responsible for
releasing this announcement is Emma Whyte (General Counsel and Company
Secretary).
(1) Including the £275m New Facilities, £500m convertible bond and £22m
Nordstrom loan.
(2) Total cash financing cost of c.£55m for H2 FY23 includes interest and
fees relating to the Existing RCF, convertible bond and Nordstrom loan,
interest on lease liabilities, and interest, arrangement and advisor fees
relating to the New Facilities. The H2 FY23 incremental cash cost of
refinancing related to the New Facilities is now expected to be c.£45m
(previously guided at c.£25m at the H1 FY23 results). The expected H2 FY23
interest expense of c.£30m is unchanged.
(3) I.G.Y. Limited is a private investment company of Nick Sleep.
(4) Adjusted EBIT is defined as profit before tax, interest and adjusting
items relating to (i) implementation of the Driving Change agenda, (ii)
non-underlying sales tax and (iii) amortisation of acquired intangible assets.
(5) No change to the guidance for H2 FY23 issued in the Interim Results
announcement of 10 May 2023 except in relation to the P&L and cash impacts
of refinancing as detailed above.
For further information:
ASOS Tel: 020 7756 1000
plc
Jose Antonio Ramos Calamonte, Chief Executive Officer
Sean Glithero, Interim Chief Financial Officer
Michelle Wilson, Senior Director of Strategy & Corporate Development
Holly Cassell, Head of Investor Relations
Website: www.asosplc.com/investors
JPMorgan Cazenove
Tel: 020 7742 4000
Bill Hutchings / Will Vanderspar / Virginie de Grivel Nigam / Jessica Murray
Numis Tel: 020 7260 1000
Alex Ham / Jonathan Wilcox / Tom Jacob / Jamie Loughborough
Berenberg Tel: 020 3207 7800
Matthew Armitt / Richard Bootle / Marie Moy
Headland Consultancy Tel: 020 3805 4822
Susanna Voyle / Stephen Malthouse / Rob Walker
Background note
ASOS is a destination for fashion-loving 20-somethings around the world, with
a purpose to give its customers the confidence to be whoever they want to be.
Through its app and mobile/desktop web experience, available in nine languages
and in over 200 markets, ASOS customers can shop a curated edit of over 60,000
products, sourced from nearly 900 global and local third-party brands
alongside a mix of fashion-led own-brand labels - ASOS Design, ASOS Edition,
ASOS 4505, Collusion, Reclaimed Vintage, Topshop, Topman, Miss Selfridge and
HIIT. ASOS aims to give all of its customers a truly frictionless experience,
with an ever-greater number of different payment methods and hundreds of local
deliveries and return options, including Next-Day Delivery and Same-Day
Delivery, dispatched from state-of-the-art fulfilment centres in the UK, US
and Germany.
IMPORTANT NOTICES
This announcement including its Appendix (together, the "Announcement") and
the information contained in it is not for publication, release, transmission
distribution or forwarding, in whole or in part, directly or indirectly, in or
into the United States, Australia, Canada, Japan or South Africa or any other
jurisdiction in which publication, release or distribution would be unlawful.
This Announcement is for information purposes only and does not constitute an
offer to sell or issue, or the solicitation of an offer to buy, acquire or
subscribe for shares in the capital of the Company in the United States,
Australia, Canada, Japan or South Africa or any other state or jurisdiction.
This Announcement has not been approved by the London Stock Exchange. Any
failure to comply with these restrictions may constitute a violation of the
securities laws of such jurisdictions.
The Placing Shares have not been and will not be registered under the U.S.
Securities Act of 1933, as amended (the "Securities Act") or with any
securities regulatory authority of any state or other jurisdiction of the
United States and may not be offered, sold, pledged, taken up, exercised,
resold, renounced, transferred or delivered, directly or indirectly, in or
into the United States absent registration under the Securities Act, except
pursuant to an exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act and in compliance with any
applicable securities laws of any state or other jurisdiction of the United
States. The Placing Shares have not been approved, disapproved or recommended
by the U.S. Securities and Exchange Commission, any state securities
commission in the United States or any other U.S. regulatory authority, nor
have any of the foregoing authorities passed upon or endorsed the merits of
the offering of the Placing Shares. Subject to certain exceptions, the
securities referred to herein may not be offered or sold in the United States,
Australia, Canada, Japan, South Africa or to, or for the account or benefit
of, any national, resident or citizen of the United States, Australia, Canada,
Japan, the Republic of South Africa.
No public offering of the Placing Shares is being made in the United States,
United Kingdom or elsewhere. All offers of the Placing Shares will be made
pursuant to an exemption under the Prospectus Regulation (EU) 2017/1129 as
amended from time to time (the "EU Prospectus Regulation") or the Prospectus
Regulation (EU) 2017/1129 as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018, as amended from time to time, (the "UK
Prospectus Regulation") from the requirement to produce a prospectus. This
Announcement is being distributed to persons in the United Kingdom only in
circumstances in which section 21(1) of the Financial Services and Markets Act
2000, as amended from time to time ("FSMA") does not apply.
No prospectus will be made available in connection with the matters contained
in this Announcement and no such prospectus is required (in accordance with
the UK Prospectus Regulation) to be published. This Announcement and the terms
and conditions set out herein are for information purposes only and are
directed only at: (a) in Member States of the European Economic Area persons
who are "qualified investors" within the meaning of article 2(e) of the EU
Prospectus Regulation ("Qualified Investors"); and (b) in the United Kingdom,
persons who are "qualified investors" (within the meaning of article 2(e) of
the UK Prospectus Regulation who (i) have professional experience in matters
relating to investments falling within the definition of "investment
professionals" in article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005, as amended (the "Order"); (ii) are persons
falling within article 49(2)(a) to (d) ("high net worth companies,
unincorporated associations, etc") of the Order; or (iii) are persons to whom
it may otherwise be lawfully communicated; (all such persons together being
referred to as "relevant persons"). This Announcement and the terms and
conditions set out herein must not be acted on or relied on by persons who are
not relevant persons, if in the United Kingdom, or Qualified Investors, if in
a Member State of the European Economic Area. Persons distributing this
Announcement must satisfy themselves that it is lawful to do so. Any
investment or investment activity to which this Announcement and the terms and
conditions set out herein relates is available only to relevant persons and
will be engaged in only with relevant persons.
This Announcement has been issued by, and is the sole responsibility of, the
Company. No representation or warranty, express or implied, is or will be made
as to, or in relation to, and no responsibility or liability is or will be
accepted by the Managers, or by any of its or their respective affiliates or
agents as to or in relation to, the accuracy or completeness of this
Announcement or any other written or oral information made available to or
publicly available to any interested party or its advisers, and any liability
therefore is expressly disclaimed.
JPMC is authorised by the Prudential Regulatory Authority and regulated in the
United Kingdom by the Prudential Regulatory Authority and the Financial
Conduct Authority (the "FCA"). Numis is authorised and regulated in the United
Kingdom by the FCA. Berenberg is authorised by the German Federal Financial
Supervisory Authority (BaFin) and in the United Kingdom is deemed authorised
and subject to limited regulation by the FCA. Each of the Managers is acting
solely for the Company and no one else in connection with the Placing and will
not be responsible to anyone other than the Company for providing the
protections afforded to their respective clients nor for providing advice in
relation to the Placing and/or any other matter referred to in this
Announcement. Apart from the responsibilities and liabilities, if any, which
may be imposed on the Managers by FSMA or by the regulatory regime established
under it, none of the Managers nor any of their respective affiliates accepts
any responsibility whatsoever for the contents of the information contained in
this Announcement or for any other statement made or purported to be made by
or on behalf of the Managers or any of their respective affiliates in
connection with the Company, the Placing Shares or the Placing. The Managers
and each of their respective affiliates accordingly disclaim all and any
responsibility and liability whatsoever, whether arising in tort, contract or
otherwise (save as referred to above) in respect of any statements or other
information contained in this Announcement and no representation or warranty,
express or implied, is made by the Managers or any of their respective
affiliates as to the accuracy, completeness or sufficiency of the information
contained in this Announcement.
The distribution of this Announcement and/or the offering of the Placing
Shares in certain jurisdictions may be restricted by law. No action has been
taken by the Company or the Managers or any of their respective affiliates
that would, or which is intended to, permit an offering of the Placing Shares
in any jurisdiction or result in the possession or distribution of this
Announcement or any other offering or publicity material relating to Placing
Shares in any jurisdiction where action for that purpose is required.
Persons distributing any part of this Announcement must satisfy themselves
that it is lawful to do so. Persons (including, without limitation, nominees
and trustees) who have a contractual or other legal obligation to forward a
copy of this Announcement should seek appropriate advice before taking any
such action. Persons into whose possession this Announcement comes are
required by the Company and the Managers to inform themselves about, and to
observe, such restrictions.
This Announcement contains (or may contain) certain forward-looking statements
with respect to certain of the Company's current expectations and projections
about future events. These statements, which sometimes use words such as
"aim", "anticipate", "believe", "intend", "plan", "estimate", "expect" and
words of similar meaning, reflect the directors' beliefs and expectations and
involve a number of risks, uncertainties and assumptions which may occur in
the future, are beyond the Company's control and could cause actual results
and performance to differ materially from any expected future results or
performance expressed or implied by the forward-looking statement. Statements
contained in this Announcement regarding past trends or activities should not
be taken as a representation that such trends or activities will continue in
the future. The information contained in this Announcement is subject to
change without notice and, except as required by applicable law, the Company
does not assume any responsibility or obligation to update publicly or review
any of the forward-looking statements contained in it, nor do they intend to.
You should not place undue reliance on forward-looking statements, which speak
only as of the date of this Announcement. No statement in this Announcement is
or is intended to be a profit forecast or profit estimate or to imply that the
earnings of the Company for the current or future financial years will
necessarily match or exceed the historical or published earnings of the
Company. As a result of these risks, uncertainties and assumptions, the
recipient should not place undue reliance on these forward-looking statements
as a prediction of actual results or otherwise. This Announcement does not
identify or suggest, or purport to identify or suggest, the risks (direct or
indirect) that may be associated with an investment in the Placing Shares. Any
investment decision to buy Placing Shares in the Placing must be made solely
on the basis of publicly available information, which has not been
independently verified by the Managers.
The information in this Announcement may not be forwarded or distributed to
any other person and may not be reproduced in any manner whatsoever. Any
forwarding, distribution, reproduction or disclosure of this information in
whole or in part is unauthorised. Failure to comply with this directive may
result in a violation of the Securities Act or the applicable laws of other
jurisdictions.
This Announcement does not constitute an invitation to underwrite, subscribe
for or otherwise acquire or dispose of any securities in any jurisdiction.
This Announcement does not constitute a recommendation concerning any
investor's option with respect to the Placing. Each investor or prospective
investor should conduct his, her or its own investigation, analysis and
evaluation of the business and data described in this Announcement and
publicly available information. The price and value of securities can go down
as well as up. Past performance is not a guide to future performance.
The Placing Shares to be issued pursuant to the Placing will not be admitted
to trading on any stock exchange other than the main market of the London
Stock Exchange.
Neither the content of the Company's website nor any website accessible by
hyperlinks on the Company's website is incorporated in, or forms part of, this
Announcement.
This Announcement has been prepared for the purposes of complying with
applicable law and regulation in the United Kingdom 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 and regulations of
any jurisdiction outside the United Kingdom.
UK Product Governance Requirements
Solely for the purposes of the product governance requirements contained
within the FCA Handbook Product Intervention and Product Governance Sourcebook
(the "UK Product Governance Rules"), and disclaiming all and any liability,
whether arising in tort, contract or otherwise, which any 'manufacturer' (for
the purposes of the UK Product Governance Rules) may otherwise have with
respect thereto, the Placing Shares have been subject to a product approval
process, which has determined that such Placing Shares are: (i) compatible
with an end target market of: (a) investors who meet the criteria of
professional clients as defined in point (8) of Article 2(1) of Regulation
(EU) No 600/2014 as it forms part of domestic UK law by virtue of the European
Union (Withdrawal) Act 2018 and the European Union (Withdrawal Agreement) Act
2020; (b) eligible counterparties, as defined in the FCA Handbook Conduct of
Business Sourcebook ("COBS"); and (c) retail clients who do not meet the
definition of professional client under (b) or eligible counterparty per (c);
and (ii) eligible for distribution through all permitted distribution channels
(the "UK target market assessment").
Notwithstanding the UK target market assessment, distributors should note
that: the price of the Placing Shares may decline and investors could lose all
or part of their investment; the Placing Shares offer no guaranteed income and
no capital protection; and an investment in the Placing Shares is compatible
only with investors who do not need a guaranteed income or capital protection,
who (either alone or in conjunction with an appropriate financial or other
adviser) are capable of evaluating the merits and risks of such an investment
and who have sufficient resources to be able to bear any losses that may
result therefrom. The UK target market assessment is without prejudice to the
requirements of any contractual, legal or regulatory selling restrictions in
relation to the Placing. Furthermore, it is noted that, notwithstanding the UK
target market assessment, the Managers will only procure investors who meet
the criteria of professional clients and eligible counterparties. For the
avoidance of doubt, the UK target market assessment does not constitute: (a)
an assessment of suitability or appropriateness for the purposes of COBS 9A
and COBS 10A, respectively; or (b) a recommendation to any investor or group
of investors to invest in, or purchase or take any other action whatsoever
with respect to the Placing Shares.
Each distributor is responsible for undertaking its own UK target market
assessment in respect of the Placing Shares and determining appropriate
distribution channels.
NOTWITHSTANDING ANYTHING IN THE FOREGOING, NO PUBLIC OFFERING OF THE PLACING
SHARES IS BEING MADE BY ANY PERSON ANYWHERE AND THE COMPANY HAS NOT AUTHORISED
OR CONSENTED TO ANY SUCH OFFERING IN RELATION TO THE PLACING SHARES.
APPENDIX: TERMS AND CONDITIONS OF THE PLACING
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS RESTRICTED AND IS
NOT FOR PUBLICATION, RELEASE, TRANSMISSION, DISTRIBUTION OR FORWARDING,
DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED
STATES, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR ANY JURISDICTION IN WHICH
THE SAME WOULD BE UNLAWFUL (EACH A "RESTRICTED TERRITORY").
IMPORTANT INFORMATION ON THE PLACING FOR INVITED PLACEES ONLY.
MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN THE PLACING. THIS
ANNOUNCEMENT (WHICH IS FOR INFORMATION PURPOSES ONLY) AND THE TERMS AND
CONDITIONS SET OUT IN THIS APPENDIX ARE DIRECTED ONLY AT PERSONS WHOSE
ORDINARY ACTIVITIES INVOLVE THEM IN ACQUIRING, HOLDING, MANAGING AND DISPOSING
OF INVESTMENTS (AS PRINCIPAL OR AGENT) FOR THE PURPOSES OF THEIR BUSINESS AND
WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVSESTMENTS AND ARE:
(A) PERSONS IN MEMBER STATES OF THE EUROPEAN ECONOMIC AREA ("EEA") WHO ARE
"QUALIFIED INVESTORS" WITHIN THE MEANING OF ARTICLE 2(E) OF THE PROSPECTUS
REGULATION (WHICH MEANS REGULATION 2017/1129 AS AMENDED FROM TIME TO TIME)
(THE "EU PROSPECTUS REGULATION") ("QUALIFIED INVESTORS"); OR (B) IN THE UNITED
KINGDOM, "QUALIFIED INVESTORS" WITHIN THE MEANING OF ARTICLE 2(E) OF
REGULATION (EU) 2017/1129 (AS AMENDED) AS IT FORMS PART OF UK LAW BY VIRTUE OF
EUROPEAN UNION (WITHDRAWAL) ACT 2018 (THE "UK PROSPECTUS REGULATION"), WHO ARE
PERSONS WHO (I) HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO
INVESTMENTS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS
ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "ORDER"); OR (II) ARE PERSONS
FALLING WITHIN ARTICLE 49(2)(A) TO (D) ("HIGH NET WORTH COMPANIES,
UNINCORPORATED ASSOCIATIONS, ETC") OF THE ORDER; OR (C) ARE PERSONS TO WHOM IT
MAY OTHERWISE BE LAWFULLY COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING
REFERRED TO AS "RELEVANT PERSONS"). THIS APPENDIX AND THE TERMS AND CONDITIONS
SET OUT HEREIN MUST NOT BE ACTED ON OR RELIED ON: (I) IN THE UNITED KINGDOM,
BY PERSONS WHO ARE NOT RELEVANT PERSONS; AND (II) IN ANY MEMBER STATE OF THE
EEA, BY PERSONS WHO ARE NOT QUALIFIED INVESTORS. ANY INVESTMENT OR INVESTMENT
ACTIVITY TO WHICH THIS ANNOUNCEMENT AND THE TERMS AND CONDITIONS SET OUT
HEREIN RELATE IS AVAILABLE ONLY TO: (I) RELEVANT PERSONS IN THE UNITED KINGDOM
AND WILL BE ENGAGED IN ONLY WITH RELEVANT PERSONS IN THE UNITED KINGDOM; AND
(II) QUALIFIED INVESTORS IN MEMBER STATES OF THE EEA.
THIS APPENDIX DOES NOT ITSELF CONSTITUTE AN OFFER FOR SALE OR SUBSCRIPTION OF
ANY SECURITIES IN THE COMPANY.
THE SECURITIES MENTIONED HEREIN HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER
THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR UNDER
ANY SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES
AND MAY NOT BE OFFERED, SOLD, PLEDGED, TAKEN UP, EXERCISED, RESOLD,
TRANSFERRED OR DELIVERED, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES
ABSENT REGISTRATIONS UNDER THE SECURITIES ACT EXCEPT PURSUANT TO AN APPLICABLE
EXEMPTION FROM, OR IN A TRANSMISSION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE WITH THE SECURITIES LAWS
OF ANY STATE OR OTHER JURISDICTION OF THE UNITED STATES. THERE WILL BE NO
PUBLIC OFFER OF THE SECURITIES MENTIONED HEREIN IN THE UNITED KINGDOM, THE
UNITED STATES, ANY OTHER RESTRICTED TERRITORY OR ELSEWHERE
THE SECURITIES MENTIONED HEREIN HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
U.S. SECURITIES AND EXCHANGE COMMISSION (THE "SEC"), ANY STATE SECURITIES
COMMISSION OR ANY OTHER REGULATORY AUTHORITY IN THE UNITED STATES, NOR HAVE
ANY OF THE FOREGOING AUTHORITIES PASSED UPON OR ENDORSED THE MERITS OF THE
PLACING OR THE ACCURACY OR ADEQUACY OF THIS ANNOUNCEMENT. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENCE IN THE UNITED STATES.
EACH PLACEE SHOULD CONSULT WITH ITS OWN ADVISERS AS TO LEGAL, TAX, BUSINESS,
FINANCIAL AND RELATED ASPECTS OF AN ACQUISITION OF PLACING SHARES. THE PRICE
OF SHARES AND THE INCOME FROM THEM (IF ANY) MAY GO DOWN AS WELL AS UP AND
INVESTORS MAY NOT GET BACK THE FULL AMOUNT INVESTED ON DISPOSAL OF SHARES.
The distribution of this Announcement and the Placing and/or the offer or sale
of the Placing Shares in certain jurisdictions may be restricted by law. No
action has been taken by the Company or by the Managers (as defined below) or
any of its or their respective affiliates or any of its or their respective
agents, directors, officers or employees which would, or is intended to,
permit an offer of the Placing Shares or possession or distribution of this
Announcement or any other offering or publicity material relating to such
Placing Shares in any jurisdiction where action for that purpose is required.
This Announcement is being distributed and communicated to persons in the UK
only in circumstances to which section 21(1) of the Financial Services and
Markets Act 2000, as amended ("FSMA") does not apply.
Subject to certain exceptions, the securities referred to in this Announcement
may not be offered or sold in any Restricted Territory or to, or for the
account or benefit of, a citizen or resident, or a corporation, partnership or
other entity created or organised in or under the laws of a Restricted
Territory.
None of the Company or the Managers or any of its or their respective
affiliates or any of its or their respective agents, directors, officers or
employees makes any representation or warranty, express or implied to any
Placees regarding any investment in the securities referred to in this
Announcement under the laws applicable to such Placees. Each Placee should
consult its own advisers as to the legal, tax, business, financial and related
aspects of an acquisition of Placing Shares.
Persons who are invited to and who choose to participate in the placing (the
"Placing") of new ordinary shares (the "Placing Shares") in the capital of the
Company, by making an oral or written offer to acquire Placing Shares,
including any individuals, funds or others on whose behalf a commitment to
acquire Placing Shares is given (the "Placees"), will be deemed: (i) to have
read and understood this Announcement, including this Appendix, in its
entirety; and (ii) to be making such offer on the terms and conditions
contained in this Appendix, including being deemed to be providing (and shall
only be permitted to participate in the Placing on the basis that they have
provided) the representations, warranties, acknowledgements and undertakings
set out herein.
In particular each such Placee represents, warrants and acknowledges that:
(a) if it is in the United Kingdom, it is a Relevant Person (as
defined above) and undertakes that it will acquire, hold, manage or dispose of
any Placing Shares that are allocated to it for the purposes of its business;
(b) if it is a person in a member state of the EEA, it is a Qualified
Investor (as defined above);
(c) it is and, at the time the Placing Shares are acquired, will be
either: (i) outside the United States and is acquiring the Placing Shares in
an "offshore transaction" in accordance with Rule 903 or Rule 904 of
Regulation S under the Securities Act ("Regulation S"); or (ii) a "qualified
institutional buyer" (a "QIB") as defined in Rule 144A under the Securities
Act ("Rule 144A"), which is acquiring the Placing Shares for its own account
or for the account of one or more QIBs, each of which is acquiring beneficial
interests in the Placing Shares for its own account; if acquiring the Placing
Shares for the account of one or more other persons, it has full power and
authority to make the representations, warranties, agreements and
acknowledgements herein on behalf of each such person; or
(d) if it is a financial intermediary, as that term is used in Article
2(d) of the EU Prospectus Regulation and Article 2(d) of the UK Prospectus
Regulation, that it understands the resale and transfer restrictions set out
in this Appendix and that any Placing Shares acquired by it in the Placing
will not be acquired on a non-discretionary basis on behalf of, nor will they
be acquired with a view to their offer or resale to, persons in circumstances
which may give rise to an offer of securities to the public other than an
offer or resale in a member state of the EEA to Qualified Investors or in the
United Kingdom to Relevant Persons, or in circumstances in which the prior
consent of the Managers (as defined below) has been given to each such
proposed offer or resale.
The Company and the Managers will rely on the truth and accuracy of the
foregoing representations, warranties and acknowledgements.
The Placing Shares are being offered and sold outside the United States in
accordance with Regulation S. Any offering to be made in the United States
will be made to a limited number of QIBs pursuant to an exemption from
registration under the Securities Act in a transaction not involving any
public offering.
Persons (including, without limitation, nominees and trustees) who have a
contractual or other legal obligation to forward a copy of this Appendix or
this Announcement of which it forms part should seek appropriate advice before
taking any action. Persons into whose possession this Announcement comes are
required by the Company and the Managers to inform themselves about, and to
observe, any such restrictions.
Details of the Placing Agreement and the Placing Shares
J.P. Morgan Securities plc, which conducts its UK investment banking
activities as J.P. Morgan Cazenove ("J.P. Morgan"), Numis Securities Limited
("Numis") and Joh. Berenberg, Gossler & Co. KG, London Branch (together
the "Managers") have entered into a placing agreement with the Company (the
"Placing Agreement") under which the Managers have severally (and not jointly
or jointly and severally) agreed on the terms and subject to the conditions
set out therein, to use their reasonable endeavours to procure Placees to take
up the Placing Shares in such number and at such price, if any, as may be
agreed between the Managers and the Company and set out in the executed terms
of subscription (the "Terms of Subscription") or to the extent that, following
the execution of the Terms of Subscription, any Placee defaults in paying the
Placing Price (as defined below) in respect of any of the Placing Shares
allotted to it, the Managers have severally (and not jointly or jointly and
severally) agreed to subscribe for such Placing Shares at the Placing Price.
The issue of the Placing Shares is to be effected by way of a cashbox placing.
The Placing Shares will, when issued, be credited as fully paid and will rank
pari passu in all respects with the existing ordinary shares of 3.5 pence each
in the capital of the Company (the "Ordinary Shares"), including the right to
receive all dividends and other distributions declared, made or paid on or in
respect of the Ordinary Shares after the date of issue of the Placing Shares,
and will on issue be free of all claims, liens, charges, encumbrances and
equities. The allotment and issue of the Placing Shares will be effected by
way of a placing of new Ordinary Shares in the Company for non-cash
consideration. J.P. Morgan will subscribe for ordinary shares and redeemable
preference shares in Somerset Funding Limited, a Jersey incorporated wholly
owned subsidiary of the Company, for an amount approximately equal to the net
proceeds of the Placing. The Company will allot and issue the Placing Shares
on a non-pre-emptive basis to Placees in consideration for the transfer of the
ordinary shares and redeemable preference shares in Somerset Funding Limited
that will be issued to J.P. Morgan.
The proceeds raised through the Placing (net of expenses) will be retained for
the benefit of the Company.
Applications for listing and admission to trading
Applications will be made for the Placing Shares to be admitted to the premium
listing segment of the Official List of the Financial Conduct Authority (the
"FCA") and to be admitted to trading on the main market for listed securities
of the London Stock Exchange plc (the "London Stock Exchange") ("Admission").
It is expected that Admission will become effective not later than 8.00 a.m.
(London time) on 31 May 2023 (or such later time and/or date as the Managers
may agree with the Company) (the "Closing Date") and that dealings in the
Placing Shares will commence at that time.
Bookbuild
The Managers will today commence the bookbuilding process in respect of the
Placing (the "Bookbuild") to determine demand for participation in the Placing
by Placees. The book will open with immediate effect. This Appendix gives
details of the terms and conditions of, and the mechanics of participation in,
the Placing. No commissions will be paid to Placees or by Placees in respect
of any Placing Shares.
The Managers and the Company shall be entitled to effect the Placing by such
alternative method to the Bookbuild as they may, in their sole discretion,
determine.
Participation in, and principal terms of, the Placing
1. The Managers are acting as joint global coordinators and
joint bookrunners in relation to the Placing severally, and not jointly, nor
jointly and severally, as agents of the Company. Participation in the Placing
will only be available to persons who may lawfully be, and are, invited to
participate by any of the Managers. Each of the Managers and their respective
affiliates are entitled to enter bids as principal in the Bookbuild.
2. The single price payable in respect of the Placing Shares
will be 418.1 pence which is the closing price of the Ordinary Shares on 25
May 2023 (the "Placing Price").
3. To bid in the Bookbuild, prospective Placees should
communicate their bid by telephone or in writing to their usual sales contact
at one of the Managers. Each bid should state the number of Placing Shares
which the prospective Placee wishes to acquire at the Placing Price. Bids may
be scaled down by the Managers on the basis referred to in paragraph 6 below.
4. The Bookbuild is expected to close no later than 7.00 a.m.
(London time) on 26 May 2023, but may be closed earlier or later, at the
discretion of the Managers. The Managers may, in agreement with the Company,
accept bids that are received after the Bookbuild has closed.
5. Each prospective Placee's allocation will be agreed by the
Managers and the Company and will be confirmed to Placees orally by the
relevant Manager following the close of the Bookbuild, and a trade
confirmation will be dispatched as soon as possible thereafter. The relevant
Manager's oral confirmation to such Placee will constitute an irrevocable
legally binding commitment upon such person (who will at that point become a
Placee) in favour of such Manager and the Company, under which such Placee
agrees to acquire the number of Placing Shares allocated to it and to pay the
relevant Placing Price for each such Placing Share on the terms and conditions
set out in this Appendix and in accordance with the Company's corporate
documents.
6. The Managers will, in effecting the Placing, agree with the
Company the identity of the Placees and the basis of allocation of the Placing
Shares. The Managers may choose to accept bids, either in whole or in part, on
the basis of allocations determined in agreement with the Company and may
scale down any bids for this purpose on such basis as it may determine. The
Managers may also, notwithstanding paragraphs 3 and 5 above, in agreement with
the Company: (i) allocate Placing Shares after the time of any initial
allocation to any person submitting a bid after that time; and (ii) allocate
Placing Shares after the Bookbuild has closed to any person submitting a bid
after that time. The Company reserves the right (upon agreement with the
Managers) to reduce or seek to increase the amount to be raised pursuant to
the Placing, at its absolute discretion. The acceptance of the bids shall be
at the relevant Manager's absolute discretion, subject to agreement with the
Company.
7. A bid in the Bookbuild will be made on the terms and
subject to the conditions in this Appendix and will be legally binding on the
Placee on behalf of which it is made and except with the relevant Manager's
consent will not be capable of variation or revocation after the time at which
it is submitted. Each Placee will also have an immediate, separate,
irrevocable and binding obligation, owed to the relevant Manager, to pay it
(or as it may direct) in cleared funds an amount equal to the product of the
Placing Price and the number of Placing Shares that such Placee has agreed to
acquire. Each Placee's obligations will be owed to the relevant Manager.
8. Except as required by law or regulation, no press release
or other announcement will be made by the Managers or the Company using the
name of any Placee (or its agent), in its capacity as Placee (or agent), other
than with such Placee's prior written consent.
9. Irrespective of the time at which a Placee's allocation
pursuant to the Placing is confirmed, settlement for all Placing Shares to be
acquired pursuant to the Placing will be required to be made at the same time,
on the basis explained below under "Registration and Settlement".
10. All obligations under the Bookbuild and Placing will be
subject to fulfilment or (where applicable) waiver of the conditions referred
to below under "Conditions of the Placing" and to the Placing not being
terminated on the basis referred to below under "Right to terminate under the
Placing Agreement".
11. By participating in the Bookbuild, each Placee agrees that
its rights and obligations in respect of the Placing will terminate only in
the circumstances described below and will not be capable of rescission or
termination by the Placee after confirmation (oral or otherwise) by a Manager.
12. To the fullest extent permissible by law, none of the
Managers, the Company nor any of their respective directors, officers,
employees, agents or affiliates nor any person acting on their respective
behalf shall have any responsibility or liability (whether in contract, tort
or otherwise) to any Placee (or to any other person whether acting on behalf
of a Placee or otherwise). In particular, none of the Managers, nor the
Company, nor any of their respective directors, officers, employees, agents or
affiliates nor any person acting on their respective behalf shall have any
responsibility or liability (whether in contract, tort or otherwise and
including to the fullest extent permissible by law, any fiduciary duties) in
respect of the Managers' conduct of the Bookbuild or of such alternative
method of effecting the Placing as the Managers and the Company may agree.
Conditions of the Placing
The Placing is conditional upon the Placing Agreement becoming unconditional
and not having been terminated in accordance with its terms. The Managers'
obligations under the Placing Agreement are conditional on customary terms and
conditions, including among others:
(a) the warranties of the Company contained in the Placing Agreement being
true and accurate and not misleading on and as of the date of the Placing
Agreement and the Closing Date;
(b) Admission occurring not later than 8:00 a.m. (London time) on the
Closing Date (or such later time or date as the Managers may agree with the
Company);
(c) the Company having complied with its obligations under the Placing
Agreement and the terms and conditions of the Placing which fall to be
performed on or prior to the Closing Date;
(d) the Terms of Subscription having been executed by the Company and the
Managers (which shall be at the absolute discretion of the Company and the
Managers);
(e) the commitment letters entered into by Aktieselskabet Af 5.5.2010,
Camelot Capital Partners LLC and IGY Limited, and the facilities agreement
between the Company and Bantry Bay Capital entered to by the Company remain in
full force and effect;
(f) the publication by the Company of, among other announcements, the
results of the Placing through a Regulatory Information Service; and
(g) the Company allotting, subject only to Admission, the relevant Placing
Shares in accordance with the Placing Agreement.
If: (i) any of the conditions contained in the Placing Agreement, including
those described above, are not fulfilled or (where applicable) waived by the
Managers by the relevant time or date specified (or such later time or date as
the Company and the Managers may agree); or (ii) the Placing Agreement is
terminated in the circumstances specified below, the Placing will lapse and
the Placees' rights and obligations hereunder in relation to the Placing
Shares shall cease and terminate at such time and each Placee agrees that no
claim can be made by it in respect thereof.
The Managers may, at their discretion and upon such terms as they think fit,
waive compliance by the Company with the whole or any part of any of the
Company's obligations in relation to the conditions contained in the Placing
Agreement save that conditions (b), (d), (e) and (f) above may not be waived.
Any such waiver will not affect Placees' commitments as set out in this
Announcement.
By participating in the Placing each Placee agrees that none of the Managers,
nor any of their respective directors, officers, employees, agents or
affiliates shall have any liability (whether in contract, tort or otherwise)
to any Placee (or to any other person whether acting on behalf of a Placee or
otherwise) in respect of any decision it may make as to whether or not to
waive or to extend the time and/or date for the satisfaction of any condition
to the Placing or in respect of the Placing generally, and by participating in
the Placing each Placee agrees that any such decision is within the absolute
discretion of the Managers.
By participating in the Bookbuild, each Placee agrees that its rights and
obligations hereunder terminate only in the circumstances described above and
under "Right to terminate under the Placing Agreement" below, and will not be
capable of rescission or termination by the Placee.
Right to terminate under the Placing Agreement
The Managers are entitled, at any time before Admission, to terminate the
Placing Agreement in accordance with its terms in certain circumstance,
including: (i) breach of the representation, warranties or undertakings of the
Company contained in the Placing Agreement; or (ii) upon the occurrence, in
the good faith opinion of the Managers, of certain material adverse changes in
the financial condition or prospects of the Company; (iii) in the event of
certain force majeure events; or (iv) if application for Admission is refused
by the FCA or the London Stock Exchange.
Upon termination of the Placing Agreement, the parties to the Placing
Agreement shall be released and discharged (except for any liability arising
before or in relation to such termination) from their respective obligations
under or pursuant to the Placing Agreement, subject to certain exceptions.
By participating in the Placing, Placees agree that the exercise or
non-exercise by any Manager of any right of termination or other discretion
arising under the Placing Agreement shall be within the discretion of the
relevant Manager, and neither the Company nor the Managers need to make any
reference to, or consultation with, Placees and neither the Company nor the
Managers nor any of their respective directors, officers, employees, agents or
affiliates shall have any liability to Placees whatsoever in connection with
any such exercise or failure to exercise.
Lock-up
The Company has undertaken to the Managers that, between the date of the
Placing Agreement and 180 calendar days after the Closing Date (inclusive), it
will not, without the prior written consent of the Managers, enter into
certain transactions involving or relating to the Ordinary Shares, subject to
certain carve-outs agreed between the Managers and the Company.
By participating in the Placing, Placees agree that the exercise by the
Managers of any power to grant consent to the undertaking by the Company of a
transaction which would otherwise be subject to the lock-up under the Placing
Agreement shall be within the discretion of the Managers and that it need not
make any reference to, or consultation with, Placees and that it shall have no
liability to Placees whatsoever in connection with any such exercise of the
power to grant consent or failure to exercise such power.
No Prospectus
No offering document or prospectus has been or will be submitted to be
approved by the FCA (or any other authority) in relation to the Placing or
Admission and no such prospectus is required (in accordance with the UK
Prospectus Regulation) to be published.
Placees' commitments will be made solely on the basis of the information
contained in this Announcement (including this Appendix). Each Placee, by
accepting a participation in the Placing, agrees that the content of this
Announcement (including this Appendix) and all other publicly available
information previously or simultaneously published by the Company by
notification to a Regulatory Information Service or otherwise filed by the
Company is exclusively the responsibility of the Company and confirms that it
has neither received nor relied on any other information, representation,
warranty, or statement made by or on behalf of the Company or the Managers or
any other person and none of the Company, the Managers nor any of their
respective affiliates, nor any other person will be liable for any Placee's
decision to participate in the Placing based on any other information,
representation, warranty or statement which the Placees may have obtained or
received (regardless of whether or not such information, representation,
warranty or statement was given or made by or on behalf of any such persons).
Each Placee acknowledges and agrees that it has relied on its own
investigation of the business, financial or other position of the Company in
accepting a participation in the Placing. Nothing in this paragraph shall
exclude the liability of any person for fraudulent misrepresentation.
Registration and Settlement
Settlement of transactions in the Placing Shares (ISIN: GB0030927254)
following Admission will take place in CREST, subject to certain exceptions.
The Managers and the Company reserve the right to require settlement of, and
delivery of, some or all of the Placing Shares to Placees by such other means
that they deem necessary if delivery or settlement is not practicable in CREST
within the timetable set out in this Announcement or would not be consistent
with the regulatory requirements in the Placee's jurisdiction.
Following the close of the Bookbuild for the Placing, each Placee allocated
Placing Shares in the Placing will be sent a trade confirmation in accordance
with the standing arrangements in place with the relevant Manager stating the
number of Placing Shares allocated to it at the Placing Price, the aggregate
amount owed by such Placee to the Managers and settlement instructions. Each
Placee agrees that it will do all things necessary to ensure that delivery and
payment is completed in accordance with the standing CREST or certificated
settlement instructions in respect of the Placing Shares that it has in place
with the relevant Manager (unless otherwise agreed).
It is expected that settlement will be on 31 May 2023 in accordance with the
instructions set out in the trade confirmation.
In the event of any difficulties or delays in the admission of the Placing
Shares to CREST or the use of CREST in relation to the Placing, the Company
and the Managers may agree that the Placing Shares should be issued in
certificated form. The Managers reserve the right to require settlement for
the Placing Shares, and to deliver the Placing Shares to Placees, by such
other means as they deem necessary if delivery or settlement to Placees is not
practicable within the CREST system or would not be consistent with regulatory
requirements in a Placee's jurisdiction.
Interest is chargeable daily on payments not received from Placees on the due
date in accordance with the arrangements set out above at the rate of two
percentage points above SONIA as determined by the Managers.
Each Placee is deemed to agree that, if it does not comply with these
obligations, the Managers may sell any or all of the Placing Shares allocated
to that Placee on such Placee's behalf and retain from the proceeds, for the
Managers' account and benefit, an amount equal to the aggregate amount owed by
the Placee plus any interest due. The relevant Placee will, however, remain
liable for any shortfall below the aggregate amount owed by it and may be
required to bear any stamp duty or stamp duty reserve tax or other stamp,
securities, transfer, registration, execution, documentary or other similar
impost, duty or tax imposed in any jurisdiction (together with any interest,
fines or penalties) which may arise upon the sale of such Placing Shares on
such Placee's behalf. By communicating a bid for Placing Shares, each Placee
confers on the Managers all such authorities and powers necessary to carry out
any such sale and agrees to ratify and confirm all actions which the Managers
lawfully takes in pursuance of such sale.
If Placing Shares are to be delivered to a custodian or settlement agent,
Placees should ensure that the trade confirmation is copied and delivered
immediately to the relevant person within that organisation.
Insofar as Placing Shares are settled in a Placee's name or that of its
nominee or in the name of any person for whom a Placee is contracting as agent
or that of a nominee for such person, such Placing Shares should, subject as
provided below, be so settled free from any liability to UK stamp duty or
stamp duty reserve tax. If there are any circumstances in which any other
stamp duty or stamp duty reserve tax (and/or any interest, fines or penalties
relating thereto) is payable in respect of the allocation, allotment, issue or
delivery of the Placing Shares (or for the avoidance of doubt if any stamp
duty or stamp duty reserve tax is payable in connection with any subsequent
transfer of or agreement to transfer Placing Shares), none of the Managers nor
the Company shall be responsible for the payment thereof.
Representations, Warranties and Further Terms
By submitting a bid and/or participating in the Placing, each Placee (and any
person acting on such Placee's behalf) irrevocably acknowledges, confirms,
undertakes, represents, warrants and agrees (for itself and for any such
prospective Placee) with the Managers and the Company, in each case as a
fundamental term of its application for Placing Shares, the following:
1 it has read and understood this Announcement in its entirety
(including this Appendix), and that its participation in the Bookbuild and the
Placing and its subscription for and purchase of Placing Shares is subject to
and based upon all the terms, conditions, representations, warranties,
indemnities, acknowledgements, agreements and undertakings and other
information contained herein and undertakes not to redistribute or duplicate
this Announcement;
2 that it has made its investment decision based solely upon its
own judgement, due diligence and analysis and not upon any view expressed or
information provided by or on behalf of the Managers or any other person
otherwise than as set out in this Announcement;
3 that no offering document, offering memorandum, admission
document or prospectus has been or will be prepared in connection with the
Placing or is required under the FSMA, the UK Prospectus Regulation or any
other applicable law and it has not received and will not receive a prospectus
or other offering document in connection therewith;
4 that none of the Managers, the Company, nor any of their
respective affiliates or any person acting on behalf of any of them has
provided, nor will provide it, with any information regarding the Placing
Shares, the Bookbuild, the Placing or the Company other than this
Announcement; nor has it requested any of the Managers, the Company, any of
their affiliates or any person acting on behalf of any of them to provide it
with any such information;
5 that the Company's Ordinary Shares are listed on the premium
listing segment of the Official List of the FCA and admitted to trading on the
main market of the London Stock Exchange (the "Exchange") and the Company is
therefore required to publish certain business and financial information in
accordance with the Market Abuse Regulation (EU) No.596/2014 (as it forms part
of the laws of the United Kingdom by virtue of the European Union (Withdrawal)
Act 2018, as amended from time to time) ("Market Abuse Regulation") and the
rules and practices of the Exchange and/or the FCA (collectively, the
"Exchange Information"), which includes a description of the Company's
business and the Company's financial information, including balance sheets and
income statements, and similar statements for preceding financial years and
that it is able to obtain or access the Exchange Information without undue
difficulty and that it has reviewed such Exchange Information as it has deemed
necessary;
6 that the content of this Announcement is exclusively the
responsibility of the Company and that none of the Managers, nor any of their
respective affiliates nor any person acting on behalf of any of them has or
shall have any liability for any information, representation or statement
contained in, or omission from, this Announcement or any information
previously published by or on behalf of the Company, including, but not
limited to, the Exchange Information, and will not be liable for any Placee's
decision to participate in the Placing based on any information,
representation or statement contained in this Announcement or otherwise. Each
Placee further represents, warrants and agrees that the only information on
which it is entitled to rely and on which such Placee has relied in committing
itself to acquire Placing Shares is contained in this Announcement and any
information previously or simultaneously published by the Company by
notification to a Regulatory Information Service, such information being all
that such Placee deems necessary or appropriate and sufficient to make an
investment decision in respect of the Placing Shares and that it has neither
received nor relied on any other information given, or representations,
warranties or statements made, by any of the Managers or the Company nor any
of their respective affiliates and none of the Managers or the Company will be
liable for any Placee's decision to accept an invitation to participate in the
Placing based on any other information, representation, warranty or statement,
provided that nothing in this paragraph excludes the liability of any person
for fraudulent misrepresentation made by that person;
7 that it may not rely, and has not relied, on any investigation
that the Managers, any of their affiliates or any person acting on their
behalf, may or may not have conducted with respect to the Placing Shares or
the Company, and none of such persons has made any representation, express or
implied, with respect to the Company, the Placing Shares or the accuracy,
completeness or adequacy of the Exchange Information or any other information;
each Placee further acknowledges that it has conducted its own investigation
of the Company and the Placing Shares and has received all information it
believes necessary or appropriate in connection with its investment in the
Placing Shares;
8 that it has conducted its own investigation with respect to
the Company and the Placing Shares, received and reviewed all information that
it believes is necessary or appropriate in connection with its purchase of
Placing Shares and made its own assessment and has satisfied itself concerning
the relevant tax, legal, regulatory, currency and other economic
considerations relevant to its investment in the Placing Shares;
9 that none of the Managers, nor any of their respective
affiliates or any person acting on behalf of any of them has or shall have any
liability for any information made publicly available by or in relation to the
Company or any representation, warranty or statement relating to the Company
or the Group contained therein or otherwise, provided that nothing in this
paragraph excludes the liability of any person for fraudulent
misrepresentation made by that person;
10 that it is and, at the time the Placing Shares are acquired, will
be either: (i) outside the United States and is acquiring the Placing Shares
in an "offshore transaction" in accordance with Rule 903 or Rule 904 of
Regulation S; or (ii) a QIB, which is acquiring the Placing Shares for its own
account or for the account of one or more QIBs, each of which is acquiring
beneficial interests in the Placing Shares for its own account; if acquiring
the Placing Shares for the account of one or more other persons, it has sole
investment discretion with respect to each such account and full power and
authority to make the representations, warranties, agreements and
acknowledgements herein on behalf of each such account;
11 that it: (i) has such knowledge and experience in financial,
business and international investment matters as is required to be capable of
evaluating the merits and risks of an investment in the Placing Shares; (ii)
will not look to the Managers for all or part of any such loss it may suffer;
(iii) is experienced in investing in securities of this nature in this sector
and is aware that it might be required to bear and is able to bear the
economic risk of an investment in the Placing Shares for an indefinite period
of time; (iv) is able to sustain a complete loss of an investment in the
Placing Shares; and (v) has no need for liquidity with respect to its
investment in the Placing Shares;
12 unless otherwise specifically agreed with the Managers, that they
are not, and at the time the Placing Shares are acquired, neither it nor the
beneficial owner of the Placing Shares will be, a resident of a Restricted
Territory or any other jurisdiction in which it would be unlawful to make or
accept an offer to acquire the Placing Shares, subject to certain
restrictions;
13 that the Placing Shares have not been and will not be registered
under the Securities Act and that a prospectus will not be published in
respect of any of the Placing Shares under the securities laws or legislation
of the United States or any state or jurisdiction thereof, and that the
Placing Shares have not been and will not be registered and that a prospectus
will not be published in respect of any of the Placing Shares under the
securities laws or legislation of Australia, Canada, South Africa or Japan
and, subject to certain exceptions, may not be offered, sold, or delivered or
transferred, directly or indirectly, in or into any of these jurisdictions or
any other jurisdiction where to do so would be unlawful;
14 that the Placing Shares are being subscribed for investment
purposes, and not with a view to offer, resell or distribute, directly or
indirectly, within the meaning of the United States securities laws;
15 that it is not acquiring any of the Placing Shares as a result of
any form of general solicitation or general advertising (within the meaning of
Rule 502(c) of Regulation D under the Securities Act) or directed selling
efforts (as defined in Regulation S);
16 that it is not an affiliate (as defined in Rule 501(b) under the
Securities Act) of the Company, and is not acting on behalf of an affiliate of
the Company;
17 that no representation has been made as to the availability of
any exemption under the Securities Act for the reoffer, resale, pledge or
transfer of the Placing Shares;
18 that the Placing Shares offered and sold in the United States are
"restricted securities" within the meaning of Rule 144(a)(3) under the
Securities Act and further agrees that so long as the Placing Shares are
restricted securities, it will segregate such Placing Shares from any other
shares in the Company that it holds that are not restricted securities, will
not deposit the Placing Shares into any depositary receipt facility maintained
by any depositary bank in respect of the Company's ordinary shares and will
notify any subsequent transferee of such Placing Shares of the applicable
transfer restrictions;
19 that, if the Placing Shares were offered to it in the United
States, it has consulted its own independent advisors or otherwise has
satisfied itself concerning, without limitation, the effects of United States
federal, state and local income tax laws and foreign tax laws generally and
the U.S. Employee Retirement Income Security Act of 1974, as amended
("ERISA"), the U.S. Investment Company Act of 1940, as amended, and the
Securities Act;
20 that either: (a) it is not and for so long as it holds the
Placing Shares (or any interests therein) will not be a "benefit plan
investor" as defined in Section 3(42) of ERISA, or a governmental, church or
non-U.S. plan which is subject to any federal, state, local or non-U.S. law
that is substantially similar to Section 406 of ERISA or Section 4975 of the
U.S. Internal Revenue Code of 1986, as amended (the "Code") ("Similar Law");
or (b) its acquisition, holding and disposition of the Placing Shares will not
result in a non-exempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code, or, in the case of such a governmental, church or
non-U.S. plan, a violation of any Similar Law;
21 that the allocation, allotment, issue and delivery to it of
Placing Shares or to the person specified by it as the person to whom such
Placing Shares are allocated will not give rise to a liability under any of
sections 67, 70, 93 or 96 of the Finance Act 1986 (depositary receipts and
clearance services) and that the Placing Shares are not being acquired in
connection with arrangements to issue depositary receipts or to issue or
transfer Placing Shares into a clearance service for the purposes of those
sections;
22 that it has complied with its obligations under the Criminal
Justice Act 1993, Market Abuse Regulation, Section 118 of the Financial
Services and Markets Act 2000 (the "FSMA") and in connection with money
laundering and terrorist financing under the Proceeds of Crime Act 2002, the
Terrorism Act 2000, the Anti-Terrorism Crime and Security Act 2001, the
Terrorism Act 2006, the Money Laundering, Terrorist Financing and Transfer of
Funds (Information on the Payer) Regulations 2017 and the Money Laundering
Sourcebook of the FCA and any related or similar rules, regulations or
guidelines, issued, administered or enforced by any government agency having
jurisdiction in respect thereof and it is not a person: (a) with whom
transactions are prohibited under the Foreign Corrupt Practices Act of 1977 or
any economic sanction programmes administered by, or regulations promulgated
by, the Office of Foreign Assets Control of the U.S. Department of the
Treasury; (b) named on the Consolidated List of Financial Sanctions Targets
maintained by HM Treasury of the United Kingdom; or (c) subject to financial
sanctions imposed pursuant to a regulation of the European Union or a
regulation adopted by the United Nations (together the "Regulations") and, if
making payment on behalf of a third party, that satisfactory evidence has been
obtained and recorded by it to verify the identity of the third party as
required by the Regulations;
23 that its commitment to acquire Placing Shares on the terms set
out herein will continue notwithstanding any amendment that may in future be
made to the terms and conditions of the Placing and that Placees will have no
right to be consulted or require that their consent be obtained with respect
to the Company's or the Managers' conduct of the Placing;
24 that it is acting as principal only in respect of the Placing or,
if it is acting for any other person: (i) it is duly authorised to do so and
has full power to make the acknowledgements, representations and agreements
herein on behalf of each such person; and (ii) it is and will remain liable to
the Company and/or the Managers for the performance of all its obligations as
a Placee in respect of the Placing (regardless of the fact that it is acting
for another person);
25 that it is a Relevant Person and undertakes that it will acquire,
hold, manage or dispose of any Placing Shares that are allocated to it for the
purposes of its business;
26 that it understands that any investment or investment activity to
which this Announcement relates is available only to Relevant Persons in the
United Kingdom and Qualified Investors in any member state of the EEA and will
be engaged in only with such persons, and further understands that this
Announcement must not be acted on or relied on by persons who are not Relevant
Persons or Qualified Investors (as applicable);
27 if it is a person in a member state of the European Economic Area
("EEA") that it is a Qualified Investor (as defined above) and, to the extent
applicable, any funds on behalf of which it is acquiring the Placing Shares
that are located in a member state of the EEA are each themselves such a
Qualified Investor;
28 if in the United Kingdom, that it is a Relevant Person (as
defined above);
29 if a financial intermediary, as that term is used in Article 2(d)
of the EU Prospectus Regulation and Article 2(d) of the UK Prospectus
Regulation, that the Placing Shares purchased by it in the Placing will not be
acquired on a non-discretionary basis on behalf of, nor will they be acquired
with a view to their offer or resale to, persons in a Member State of the EEA
other than Qualified Investors or persons in the United Kingdom other than
Relevant Persons, or in circumstances in which the prior consent of the
Managers has been given to the offer or resale;
30 that it has not offered or sold and, prior to the expiry of a
period of six months from Admission, will not offer or sell any Placing Shares
to persons in the United Kingdom, except to persons whose ordinary activities
involve them in acquiring, holding, managing or disposing of investments (as
principal or agent) for the purposes of their business or otherwise in
circumstances which have not resulted and which will not result in an offer to
the public in the United Kingdom within the meaning of section 85(1) of the
FSMA;
31 that it has not offered or sold and will not offer or sell any
Placing Shares to persons in the EEA prior to Admission except to persons
whose ordinary activities involve them in acquiring, holding, managing or
disposing of investments (as principal or agent) for the purposes of their
business or otherwise in circumstances which have not resulted in and which
will not result in an offer to the public in any member state of the EEA
within the meaning of the EU Prospectus Regulation and will not result in a
requirement for the publication of a prospectus pursuant to Article 3 of the
EU Prospectus Regulation;
32 that it has only communicated or caused to be communicated and
will only communicate or cause to be communicated any invitation or inducement
to engage in investment activity (within the meaning of section 21 of the
FSMA) relating to the Placing Shares in circumstances in which section 21(1)
of the FSMA does not require approval of the communication by an authorised
person;
33 that it has complied and will comply with all applicable laws
with respect to anything done by it in relation to the Placing Shares
(including all relevant provisions of the FSMA in the United Kingdom);
34 that it and any person acting on its behalf is entitled to
acquire the Placing Shares under the laws of all relevant jurisdictions and
that it has all necessary capacity and has obtained all necessary consents and
authorities to enable it to commit to this participation in the Placing and to
perform its obligations in relation thereto (including, without limitation, in
the case of any person on whose behalf it is acting, all necessary consents
and authorities to agree to the terms set out or referred to in this Appendix)
and will honour such obligations;
35 that it (and any person acting on its behalf) has the funds
available to pay for, and will make payment in respect of the Placing Shares
allocated to it, in accordance with this Appendix on the due time and date set
out herein (unless otherwise agreed), failing which the relevant Placing
Shares may be placed with other acquirers or sold as the Managers may in their
sole discretion determine and without liability to such Placee, who will
remain liable for any amount by which the net proceeds of such sale falls
short of the product of the Placing Price and the number of Placing Shares
allocated to it and may be required to bear any stamp duty, stamp duty reserve
tax or other similar taxes (together with any interest, fines or penalties)
which may arise upon the sale of such Placee's Placing Shares;
36 that it (and any person acting on its behalf) is entitled to
purchase the Placing Shares under the laws of all relevant jurisdictions which
apply to it and that it has fully observed such laws and obtained all such
governmental and other guarantees, permits, authorisations, approvals and
consents which may be required thereunder and complied with all necessary
formalities and that it has not taken any action or omitted to take any action
which will or may result in the Managers, the Company or any of their
respective directors, officers, agents, employees or advisers acting in breach
of the legal or regulatory requirements of any jurisdiction in connection with
the Placing;
37 that none of the Managers, nor any of their respective
affiliates, nor any person acting on behalf of them, is making any
recommendations to it, advising it regarding the suitability of any
transactions it may enter into in connection with the Placing and that
participation in the Placing is on the basis that it is not and will not be a
client of any Manager and that the Managers have in connection with their
participation in the Placing and that the Mangers have no duties or
responsibilities to it for providing the protections afforded to its
respective clients or customers or for providing advice in relation to the
Placing nor in respect of any representations, warranties, undertakings or
indemnities contained in the Placing Agreement nor for the exercise or
performance of any of the Managers' rights and obligations thereunder
including any rights to waive or vary any conditions or exercise any
termination right;
38 that the person whom it specifies as the person to whom the
Placing Shares are allocated will be: (i) itself; (ii) its nominee, as the
case may be; or (iii) a person for whom it is contracting as agent or nominee.
None of the Managers or the Company will be responsible for any liability to
stamp duty or stamp duty reserve tax or other similar taxes resulting from a
failure to observe this requirement ("Indemnified Taxes"). Each Placee and any
person acting on behalf of such Placee agrees to participate in the Placing
and it agrees to indemnify the Company and the Managers on an after-tax basis
in respect of any Indemnified Taxes;
39 that any agreements entered into by it pursuant to the terms and
conditions set out in this Appendix, and all non-contractual or other
obligations arising out of or in connection with them, shall be governed by
and construed in accordance with the laws of England and Wales and it submits
(on behalf of itself and on behalf of any person on whose behalf it is acting)
to the exclusive jurisdiction of the English courts as regards any claim,
dispute or matter arising out of any such contract (including any dispute
regarding the existence, validity or termination of such contract or relating
to any non-contractual or other obligation arising out of or in connection
with such contract), except that enforcement proceedings in respect of the
obligation to make payment for the Placing Shares (together with any interest
chargeable thereon) may be taken by either the Company or the Managers in any
jurisdiction in which the relevant Placee is incorporated or in which any of
its securities have a quotation on a recognised stock exchange;
40 to indemnify on an after tax basis and hold the Company, the
Managers and their respective directors, officers, employees, agents and
affiliates harmless from any and all costs, claims, liabilities and expenses
(including legal fees and expenses) arising out of or in connection with any
breach of the representations, warranties, acknowledgements, agreements and
undertakings in this Appendix and further agrees that the provisions of this
Appendix shall survive after completion of the Placing;
41 that if it has received any inside information about the Company
in advance of the Placing, it has not: (i) dealt in the securities of the
Company; (ii) encouraged or required another person to deal in the securities
of the Company; or (iii) disclosed such information to any person, prior to
such information being made publicly available;
42 that the Placing Shares are expected to be issued to it through
CREST;
43 where it is acquiring the Placing Shares for one or more managed
accounts, that it is authorised in writing by each managed account to acquire
the Placing Shares for each managed account and it has full power to make the
acknowledgements, representations and agreements herein on behalf of each such
account;
44 if it is a pension fund or investment company, that its purchase
of Placing Shares is in full compliance with applicable laws and regulations;
and
45 that the Company, the Managers and their respective affiliates
and others will rely upon the truth and accuracy of the foregoing
representations, warranties, acknowledgements and undertakings which are given
to each Manager on its own behalf and on behalf of the Company and are
irrevocable.
The foregoing representations, warranties, confirmations, acknowledgements,
agreements and undertakings are given for the benefit of the Company as well
as the Managers and are irrevocable.
Each Placee not acquiring the Placing Shares in an "offshore transaction"
pursuant to Regulation S (each a "U.S. Placee") shall make additional specific
representations, warranties, agreements and acknowledgements pursuant to a
U.S. investor representation letter. Each U.S. Placee acknowledges that it
will not be permitted to purchase, subscribe for or otherwise take up Placing
Shares unless it has signed and returned such representation letter in
accordance with the terms thereof.
The agreement to settle a Placee's acquisition of Placing Shares (and/or the
acquisition by a person for whom such Placee is contracting as agent or
nominee) free of UK stamp duty and stamp duty reserve tax depends on the
settlement relating only to an acquisition by it and/or such person for whom
it is contacting as agent or nominee direct from the Company for the Placing
Shares in question. Such agreement also assumes that the Placing Shares are
not being acquired in connection with arrangements to issue depositary
receipts or to issue or transfer the Placing Shares into a clearance service.
If there are any such arrangements, or the settlement relates to any other
dealing in the Placing Shares, stamp duty or stamp duty reserve tax or other
similar taxes may be payable, for which neither the Company nor the Managers
will be responsible and the Placees shall indemnify the Company and the
Managers on an after-tax basis for any stamp duty or stamp duty reserve tax
paid by them in respect of any such arrangements or dealings. If this is the
case, each Placee should seek its own advice and notify the Managers
accordingly.
In addition, Placees should note that they will be liable for any stamp duty
and all other stamp, issue, securities, transfer, registration, documentary or
other duties or taxes (including any interest, fines or penalties relating
thereto) payable outside the UK by them or any other person on the acquisition
by them of any Placing Shares or the agreement by them to acquire any Placing
Shares.
Each Placee, and any person acting on behalf of the Placee, acknowledges that
the Managers do not owe any fiduciary or other duties to any Placee in respect
of any acknowledgments, confirmations, representations, warranties,
undertakings or indemnities in the Placing Agreement.
Each Placee and any person acting on behalf of the Placee acknowledges and
agrees that any Managers or any of their affiliates may, at their absolute
discretion, agree to become a Placee in respect of some or all of the Placing
Shares.
When a Placee or person acting on behalf of the Placee is dealing with a
Manager, any money held in an account with such Manager on behalf of the
Placee and/or any person acting on behalf of the Placee will not be treated as
client money within the meaning of the rules and regulations of the FCA made
under the FSMA. Each Placee acknowledges that the money will not be subject to
the protections conferred by the client money rules; as a consequence, this
money will not be segregated from such Manager's money in accordance with the
client money rules and will be used by such Manager in the course of its own
business and the Placee will rank only as a general creditor of such Manager.
Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser.
The rights and remedies of the Managers and the Company under these terms and
conditions are in addition to any rights and remedies which would otherwise be
available to each of them and the exercise or partial exercise of one will not
prevent the exercise of others.
All times and dates in this Announcement may be subject to amendment. The
Managers shall notify the Placees and any person acting on behalf of the
Placees of any changes.
The information contained herein is not for publication or distribution,
directly or indirectly, in or into the United States (including its
territories and possessions, any State of the United States and the District
of Columbia). This Announcement does not contain or constitute an offer for
sale or the solicitation of an offer to purchase securities in the United
States. The securities referred to herein have not been and will not be
registered under the Securities Act, and may not be offered or sold in the
United States absent registration under the Securities Act, except pursuant to
an available exemption from, or in transaction not subject to, the
registration requirements of the Securities Act.
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