REG - Cenkos Securities finnCap Group PLC - Scheme of Arrangement Becomes Effective

Cenkos SecuritiesAnnouncement

07/09/2023 07:45

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RNS Number : 6975L  Cenkos Securities PLC  07 September 2023

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY 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

7 September 2023

RECOMMENDED ALL-SHARE MERGER

of

Cenkos SECURITIES PLC

and

finncap GROUP PLC

to be effected by way of a scheme of arrangement under Part 26 of the
Companies Act 2006

SCHEME OF ARRANGEMENT becomes effective

On 23 March 2023, the board of Cenkos Securities plc ("Cenkos") and the board
of finnCap Group plc ("finnCap") announced that they had reached agreement on
the terms and conditions of a recommended all-share merger between Cenkos and
finnCap (the "Merger"), to be effected by means of a court-sanctioned scheme
of arrangement under Part 26 of the Companies Act 2006 (the "Scheme"). The
circular in relation to the Scheme was published on 20 April 2023 (the "Scheme
Document").

 

On 5 September 2023, Cenkos announced that the High Court of Justice in
England and Wales had sanctioned the Scheme at the Scheme sanction Court
hearing held on 5 September 2023.

 

The Boards of Cenkos and finnCap are pleased to announce that the Scheme has
today become Effective in accordance with its terms, following delivery of the
Court Order to the Registrar of Companies, and Cenkos is now a wholly-owned
subsidiary of finnCap.

 

Settlement

 

Under the terms of the Scheme, Scheme Shareholders on the register of members
of Cenkos at the Scheme Record Time, being 6.00 pm on 6 September 2023, are
entitled to receive 3.19420647 New finnCap Shares for every Scheme Share held.
 Fractions of New finnCap Shares will not be issued to Scheme Shareholders
and entitlements will be rounded down to the nearest whole number of New
finnCap Shares so that all fractions of New finnCap Shares will be
disregarded. Application has been made for the New finnCap Shares to be
admitted to trading on AIM at 8.00 am on 8 September 2023. CREST accounts of
Cenkos Shareholders will be credited with New finnCap Shares at or soon after
8.00 am on 8 September 2023. Despatch of share certificates for the New
finnCap Shares will occur within 14 days of the Effective Date.

 

Suspension and cancellation of trading

 

Trading in Cenkos Shares on AIM was suspended with effect from 7.30 am on 7
September 2023. Following the application by Cenkos to the London Stock
Exchange, the cancellation of admission to trading of Cenkos Shares on AIM is
expected to be effective as of 7.00 am on 8 September 2023.

 

Cenkos board resignations

 

As the Scheme has now become Effective, Cenkos duly announces that, as of
today's date, Lisa Gordon, Andrew Boorman and Jeremy Miller have tendered
their resignations and have stepped down from the Cenkos board.

 

Name Change

 

Following the Effective Date, finnCap intends to apply to the Registrar of
Companies to change finnCap's name to Cavendish Financial plc (the "Name
Change"). Following the Name Change becoming effective, the Combined Group
will be known as Cavendish and finnCap will adopt "CAV" as a new stock ticker.
A further announcement will be made when the name change becomes effective;
until such time, trading will continue under the "FCAP" stock ticker.

 

Other

 

Unless otherwise defined, all capitalised terms in this announcement shall
have the meanings given to them in the Scheme Document.

 

All references to times in this announcement are to London time, unless
otherwise stated.

Enquiries:

 finnCap                                                                                                                                                                                                 Tel: +44 (0)20 7220 0500

 John Farrugia, Chief Executive Officer                                                                                                                                                                  investor.relations@finncap.com

 Richard Snow, Chief Financial Officer

 Henrik Persson, Strategic PLC Advisory
 Cenkos                                                                                                                                                                                                  Tel: +44 (0)207 397 8900

 Lisa Gordon, Chair

 Julian Morse, Chief Executive Officer

 Ben Procter, Chief Financial Officer

 Jeremy Osler, Head of Corporate Finance & General Counsel
 SPARK Advisory Partners                                                                                                                                                                                 Tel: +44 (0)203 368 3552

(Financial Adviser and Nominated Adviser to Cenkos)

 Matt Davis/Adam Dawes
 Grant Thornton                (Nominated Adviser to                                                                                                                                                     Tel: +44 (0)20 7383 5100
 finnCap)

 Philip Secrett/Samantha Harrison/Samuel Littler
 Oberon Capital (Joint Broker to                                                                                                                                                                         Tel: +44 (0)20 3179 5344
 finnCap)

 Mike Seabrook
 finnCap Ltd (Joint Broker to                                                                                                                                                                            Tel: +44 (0)20 7220 0500
 finnCap)

 Tim Redfern
 Hudson Sandler (PR Adviser to finnCap)

 Dan de Belder                                                                                                                                                                                           Tel: +44 (0)7977 927142

 Rebekah Chapman                                                                                                                                                                                         Tel: +44 (0)7702 596674
 The Nisse Consultancy (PR Adviser to Cenkos)                                                                                                                                                            Tel: +44 (0) 7769 688618
 Travers Smith LLP is acting as legal adviser to finnCap and Simmons &
 Simmons LLP is acting as legal adviser to Cenkos.

Important notice about financial adviser

SPARK Advisory Partners Limited ("SPARK Advisory Partners"), which is
authorised and regulated in the United Kingdom by the Financial Conduct
Authority ("FCA"), is acting as financial adviser to Cenkos and for no one
else in connection with the Merger and will not be responsible to anyone other
than Cenkos for providing the protections afforded to its clients nor for
providing advice in relation to the Merger, the contents of this announcement
or any other matters referred to in this announcement.

Grant Thornton UK LLP ("Grant Thornton")  is authorised and regulated in the
United Kingdom by the FCA and is acting as nominated adviser for finnCap and
no one else in connection with the Merger and will not regard any other person
as its client in relation to the Merger and will not be responsible to anyone
other than finnCap  for providing the protections afforded to clients of
Grant Thornton or for providing advice in relation to the Merger, the contents
of this announcement or any other matters referred to in this announcement.

Further information

This announcement is for information purposes only and is not intended to, and
does not, constitute or form part of any offer or inducement to sell or an
invitation to purchase, otherwise acquire, subscribe for, sell or otherwise
dispose of, any securities or a solicitation of an offer to buy any
securities, any vote or approval in any jurisdiction pursuant to the Merger or
otherwise, nor shall there be any purchase, sale, issuance or exchange of
securities or such solicitation in any jurisdiction in which such offer,
solicitation, sale issuance or exchange is unlawful.

This announcement does not constitute a prospectus, prospectus equivalent
document or an exempted document.

Overseas jurisdictions

This announcement has been prepared in connection with proposals in relation
to a scheme of arrangement pursuant to and for the purpose of complying with
English law, the AIM Rules, the Takeover Code, the Market Abuse Regulation (EU
596/2014) (which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018) and the Disclosure Guidance and Transparency Rules and
information disclosed may not be the same as that which would have been
disclosed if this announcement had been prepared in accordance with the laws
of jurisdictions outside England and Wales.  Nothing in this announcement
should be relied on for any other purpose.

The release, publication or distribution of this announcement in or into
certain jurisdictions other than the United Kingdom may be restricted by the
laws of those jurisdictions and therefore any persons into whose possession
this announcement comes should inform themselves of, and observe, such
restrictions.  In particular the ability of persons who are not resident in
the United Kingdom to vote their Cenkos Shares at the Court Meeting or General
Meeting, or to appoint another person as proxy to vote at the Court Meeting or
General Meeting on their behalf, may be affected by the laws of the relevant
jurisdictions in which they are located. Further details in relation to the
Overseas Shareholders are contained in the Scheme Document.  Any failure to
comply with any such restrictions may constitute a violation of the securities
laws of any such jurisdiction.  To the fullest extent permitted by applicable
law, the companies and persons involved in the Merger disclaim any
responsibility or liability for the violation of such restrictions by any
person.

Unless otherwise determined by finnCap or required by the Takeover Code, and
permitted by applicable law and regulation, New finnCap Shares to be issued
pursuant to the Merger shall not be made available, directly or indirectly,
in, into or from a Restricted Jurisdiction where to do so would violate the
laws in that jurisdiction and no person may vote in favour of the Scheme by
any such means from within a Restricted Jurisdiction or any other jurisdiction
if to do so would constitute a violation of the laws of that jurisdiction and
no person may vote in favour of the Merger by use of mail or any other means
of instrumentality (including, without limitation, facsimile, email or other
electronic transmission, telex or telephone) of interstate or foreign commerce
of, or any facility of a national, state or other securities exchange of, any
Restricted Jurisdiction.

Accordingly, copies of this announcement and all documents relating to the
Merger are not being, and must not be, directly or indirectly, mailed or
otherwise forwarded, distributed or sent in, into or from a Restricted
Jurisdiction where to do so would violate the laws in that jurisdiction, and
persons receiving this announcement and all documents relating to the Merger
(including custodians, nominees and trustees) must not mail or otherwise
distribute or send them in, into or from such jurisdictions where to do so
would violate the laws in that jurisdiction.  Doing so may render invalid any
related purported vote in respect of the Merger.  If the Merger is
implemented by way of a Takeover Offer (unless otherwise permitted by
applicable law or regulation), such Takeover Offer may not be made, directly
or indirectly, in or into, or by use of mail or any other means or
instrumentality (including, without limitation, facsimile, email or other
electronic transmission, telex or telephone) of interstate or foreign commerce
of, or any facility of a national, state or other securities exchange of, any
Restricted Jurisdiction and such Takeover Offer will not be capable of
acceptance by any such use, means, instrumentality or facilities from within
any Restricted Jurisdiction.

The availability of New finnCap Shares pursuant to the Merger to Cenkos
Shareholders who are not resident in the United Kingdom may be affected by the
laws of the relevant jurisdictions in which they are resident.  Persons who
are not resident in the United Kingdom should inform themselves of, and
observe, any applicable requirements. To the fullest extent permitted by
applicable law, the companies and persons involved in the Merger disclaim any
responsibility or liability for the violation of such restrictions by any
person.

Further details in relation to Cenkos Shareholders in overseas jurisdictions
are contained in the Scheme Document.

The Merger shall be subject to the applicable requirements of the Takeover
Code, the Panel, the London Stock Exchange, the AIM Rules, the FCA and the
Registrar of Companies.

Additional information for US investors

Cenkos Shareholders in the United States should note that the Merger relates
to the shares of an English company with a listing on AIM and is proposed to
be effected by means of a scheme of arrangement under English law.  This
announcement, the Scheme Document and certain other documents relating to the
Merger have been or will be prepared in accordance with English law, the
Takeover Code and UK disclosure requirements, format and style, all of which
differ from those in the United States.  A transaction effected by means of a
scheme of arrangement is not subject to the tender offer rules or the proxy
solicitation rules under the US Exchange Act.  Accordingly, the Merger is
subject to the disclosure requirements of and practices applicable in the
United Kingdom to schemes of arrangement, which differ from the disclosure
requirements of the United States tender offer and proxy solicitation rules.
If, in the future, finnCap exercises the right to implement the Merger by way
of a Takeover Offer and determines to extend such Takeover Offer into the
United States, any such Takeover Offer will be made in compliance with
applicable United States laws and regulations, including any applicable
exemptions under the US Exchange Act and the US Securities Act.

Cenkos' financial statements, and all financial information included in this
announcement, the Scheme Document or any other documents relating to the
Merger, have been or will be prepared in accordance with IFRS and may not be
comparable to financial statements of companies in the United States or other
companies whose financial statements are prepared in accordance with US
generally accepted accounting principles.

Each Cenkos Shareholder is urged to consult their independent professional
adviser immediately regarding the tax consequences of the Merger applicable to
them.

It may be difficult for US holders to enforce their rights and claims arising
out of the US federal securities laws, since finnCap and Cenkos are located in
countries other than the United States, and some or all of their officers and
directors may be residents of countries other than the United States.  US
holders may not be able to sue a non-US company or its officers or directors
in a non-US court for violations of US securities laws.  Further, it may be
difficult to compel a non-US company and its affiliates to subject themselves
to a US court's judgement.

The Merger is intended to be implemented pursuant to a scheme of arrangement
under the laws of England, the New finnCap Shares to be issued as part of the
Merger will be issued in reliance on the exemption from the registration
requirements of the US Securities Act provided by Section 3(a)(10) thereof.
Cenkos will advise the Court that its sanction of the scheme of arrangement
will be relied upon by finnCap and Cenkos as an approval of the scheme of
arrangement following a hearing on its fairness to Cenkos Shareholders at
which hearing all such shareholders are entitled to attend in person or
through counsel to support or oppose the sanctioning of the scheme of
arrangement and in respect of which notification has been given to all Cenkos
Shareholders.

In accordance with normal UK practice and consistent with Rule 14e-5(b) of the
US Exchange Act, (to the extent applicable) finnCap, certain affiliated
companies and their nominees or brokers (acting as agents) may make certain
purchases of, or arrangements to purchase, shares in Cenkos outside of the
United States, other than pursuant to the Merger, until the date on which the
Merger and/or Scheme becomes Effective, lapses or is otherwise withdrawn.  If
such purchases or arrangements to purchase were to be made they would occur
either in the open market at prevailing prices or in private transactions at
negotiated prices and comply with applicable law, including the US Exchange
Act.  Any information about such purchases or arrangements to purchase will
be disclosed as required in the United Kingdom, will be reported to a
Regulatory Information Service and will be available on the London Stock
Exchange website at www.londonstockexchange.com
(http://www.londonstockexchange.com) .

Neither the United States Securities and Exchange Commission nor any US state
securities commission has approved or disapproved the Merger, passed upon the
merits or fairness of the Merger or passed any opinion upon the accuracy,
adequacy or completeness of this announcement (nor will it do so in respect of
the Scheme Document).  Any representation to the contrary is a criminal
offence in the United States.

Forward looking statements

This announcement (including information incorporated by reference in this
announcement), oral statements made regarding the Merger, and other
information published by finnCap, Cenkos, any member of the Wider finnCap
Group or any member of the Wider Cenkos Group may contain statements which
are, or may be deemed to be, "forward looking statements". Forward looking
statements are prospective in nature and are not based on historical facts,
but rather on current expectations and projections about future events, and
are therefore subject to risks and uncertainties which could cause actual
results to differ materially from the future results expressed or implied by
the forward looking statements.

The forward looking statements contained in this announcement include
statements relating to the expected effects of the Merger on finnCap, Cenkos,
any member of the Wider finnCap Group or any member of the Wider Cenkos Group
(including their future prospects, developments and strategies), the expected
timing and scope of the Merger and other statements other than historical
facts. Often, but not always, forward looking statements can be identified by
the use of forward looking words such as "prepares", "plans", "expects" or
"does not expect", "is expected", "is subject to", "budget", "projects",
"synergy", "strategy", "scheduled", "goal", "estimates", "forecasts",
"intends", "cost-saving", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "should", "would", "might"
or "will" be taken, occur or be achieved.  Forward looking statements may
include statements relating to the following: (i) future capital expenditures,
expenses, revenues, earnings, synergies, economic performance, indebtedness,
financial condition, dividend policy, losses and future prospects; (ii)
business and management strategies and the expansion and growth of finnCap's,
Cenkos', any member of the Wider finnCap Group's or any member of the Wider
Cenkos Group's operations and potential synergies resulting from the Merger;
and (iii) the effects of global economic conditions and governmental
regulation on finnCap's, Cenkos', any member of the Wider finnCap Group's or
any member of the Wider Cenkos Group's business.

Although finnCap and Cenkos believe that the expectations reflected in such
forward looking statements are reasonable, finnCap, Cenkos, the Wider finnCap
Group and the Wider Cenkos Group can give no assurance that such expectations
will prove to be correct. By their nature, forward looking statements involve
risk and uncertainty because they relate to events and depend on circumstances
that will occur in the future. There are a number of factors that could cause
actual results and developments to differ materially from those expressed or
implied by such forward looking statements.

These factors include, but are not limited to: the ability to complete the
Merger; the ability to obtain requisite regulatory and shareholder approvals
and the satisfaction of other Conditions; changes in the global political,
economic, business and competitive environments and in market and regulatory
forces; changes in future exchange and interest rates; changes in tax rates;
future business combinations or disposals; changes in general economic and
business conditions; changes in the behaviour of other market participants;
the anticipated benefits from the proposed transaction not being realised as a
result of changes in general economic and market conditions in the countries
in which finnCap, Cenkos, the Wider finnCap Group and/or the Wider Cenkos
Group operate; weak, volatile or illiquid capital and/or credit markets;
changes in the degree of competition in the geographic and business areas in
which finnCap, Cenkos, the Wider finnCap Group and/or the Wider Cenkos Group
operate; and changes in laws or in supervisory expectations or requirements.
Other unknown or unpredictable factors could cause actual results to differ
materially from those expected, estimated or projected in the forward looking
statements. If any one or more of these risks or uncertainties materialises or
if any one or more of the assumptions proves incorrect, actual results may
differ materially from those expected, estimated or projected. Such forward
looking statements should therefore be construed in the light of such factors.

Neither finnCap, Cenkos, the Wider finnCap Group nor the Wider Cenkos Group,
nor any of their respective associates or directors, officers or advisers,
provide any representation, assurance or guarantee that the occurrence of the
events expressed or implied in any forward looking statements in this
announcement will actually occur. Given these risks and uncertainties,
potential investors are cautioned not to place any reliance on these forward
looking statements.

Specifically, statements of estimated cost savings and synergies related to
future actions and circumstances which, by their nature, involve risks,
uncertainties and contingencies. As a result, the cost savings and synergies
referred to may not be achieved, may be achieved later or sooner than
estimated, or those achieved could be materially different from those
estimated.

Other than in accordance with their legal or regulatory obligations, neither
finnCap, Cenkos, the Wider finnCap Group nor the Wider Cenkos Group is under
any obligation, and each such person expressly disclaims any intention or
obligation to update or revise any forward looking statements, whether as a
result of new information, future events or otherwise.

Publication on website

A copy of this announcement and the documents required to be published
pursuant to Rule 26.1 of the Takeover Code will be available, free of charge,
subject to certain restrictions relating to persons resident in Restricted
Jurisdictions on Cenkos' website at www.cenkos.com/investors
(http://www.cenkos.com/investors) and finnCap's website at
https://announcements.finncap.com/merger/
(https://announcements.finncap.com/merger/) by no later than 12.00 p.m. on the
Business Day following this announcement.  For the avoidance of doubt,
neither the content of Cenkos' website nor finnCap's website is incorporated
into, or forms part of, this announcement.

Any person entitled to receive a copy of documents, announcements and
information relating to the Merger is entitled to receive such documents in
hard copy form free of charge.  For persons who receive a copy of this
announcement in electronic form or via a website notification, a hard copy of
this announcement will not be sent unless so requested. A person may request
that all future documents, announcements and information in relation to the
Merger are sent to them in hard copy form.

In accordance with Rule 30.3 of the Takeover Code, Cenkos Shareholders,
persons with information rights and participants in Cenkos Share Plans may
request a hard copy of this announcement by contacting, Link Asset Services,
Cenkos' Registrars on 0371 664 0321 (or +44 371 664 0321 if calling from
outside the UK). Calls are charged at the standard geographic rate and will
vary by provider. Calls outside the United Kingdom will be charged at the
applicable international rate.

If you are in any doubt about the contents of this announcement or the action
you should take, you are recommended to seek your own independent financial
advice immediately from your stockbroker, bank manager, solicitor or
independent financial adviser duly authorised under FSMA if you are resident
in the United Kingdom or, if not, from another appropriate authorised
independent financial adviser.

 

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