REG - Dignity PLC - Response to statement made by Phoenix

DignityAnnouncement

13/04/2021 07:00

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RNS Number : 2178V  Dignity PLC  13 April 2021

Dignity plc (the "Company")

 

Response to statement made by Phoenix UK Fund Limited ("Phoenix") on 12 April
2021

 

The independent directors of the Company (the "Independent Directors") note
the most recent statement by Phoenix published on its website on 12 April
2021. They note, in particular, the various comments made by Phoenix regarding
potential strategies that may be adopted for the future direction of the
group's business.

 

It should come as no surprise that many of the ideas disclosed in Phoenix's
most recent letter are amongst those currently being assessed in detail by the
Board. In the Company's letter to shareholders dated 29 March 2021, the
Independent Directors commented on the fact that the vision and views on
strategy of Phoenix and those of the Board were already closely aligned, such
that the requisitioned shareholder meeting was wholly unnecessary. The Board
is well-advanced in its detailed planning towards the announcement of a fully
thought-through strategy plan, including the possibility of a distribution of
the Crematoria business to existing shareholders on a pro rata basis. It was
always intended that the Board would announce its vision for the Company at
the time of the Company's AGM in June 2021 and this has been indicated to the
market for some time.

 

The Independent Directors find the statements made by Phoenix relating to
possible strategies (and public reference to unverified valuations for the
Crematoria division, in particular) to be deeply irresponsible. There are
significant nuances to any strategic plan of this nature before it can be made
public. The interests of all stakeholders need to be carefully addressed
including, in this instance, the interests of bondholders and employees, as
well as shareholders. There also needs to be a full and complete understanding
of all potential regulatory aspects, so that the Board can be sure of its
capacity to deliver any publicly announced strategy before it is announced.
The Board has already indicated that it is well-aware of the potential value
of different elements of the business on a stand-alone basis and of course a
core objective is to unlock value for the benefit of all shareholders.
However, it is inappropriate to hypothesize on strategies until there is
sufficient confidence in a methodology to deliver the same. That Phoenix has
chosen to "go public" on these matters prematurely serves only as a further
illustration of the lack of suitability of Gary Channon to be appointed as
someone responsible for the executive function of the Company.

 

Not for the first time since the Board convened the General Meeting to
consider the resolutions proposed, Phoenix has made ill-advised public
statements which have been self-serving and have had little regard for the
wider interests of shareholders and other stakeholders. The Board has been
informed by proxy voting agents, ISS, Glass Lewis and PIRC, that they are
advising their members to support the Board and vote against both resolutions
at the forthcoming General Meeting.  In light of Phoenix's most recent
statements, the Independent Directors are more convinced than ever that it is
in the best interests of shareholders to allow the current management team to
finish its work without handing executive control to Phoenix.

 

The Independent Directors have no hesitation in repeating their recommendation
that shareholders should vote AGAINST the resolutions.

 

The Independent Directors of Dignity plc

Gillian Kent, Dean Moore and Paul Humphreys

 

 

Chris Lane

Tilly Abraham

Buchanan
 
+44 (0)20 7466 5000

www.buchanan.uk.com (http://www.buchanan.uk.com/)
               Dignity@buchanan.uk.com

 

13 April 2021

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