REG - Stonegate Pub Co. Ei Group plc - Update to stated post-offer intention statements
17 April 2020
STONEGATE PUB COMPANY BIDCO LIMITED
Rule 19.6(b) update to stated post-offer intention statement with regard to Ei Group plc
Stonegate Pub Company Bidco Limited ("Stonegate"), a wholly-owned subsidiary of Stonegate Pub Company Limited, announces that further to the completion of its acquisition of Ei Group plc ("EIG") on 3 March 2020 (the "Acquisition"), it has taken certain courses of action which differ from its statements of intent made pursuant to Rule 2.7(c)(iv) and 24.2(a)(iii) of the City Code on Takeovers and Mergers (the "Stated Intentions") which were set out in its announcement of 18 July 2019 and the scheme document published in connection with the Acquisition on 15 August 2019 (together, the "Offer Documentation").
This announcement is required under Rule 19.6(b) of the City Code on Takeovers and Mergers.
The Stated Intentions included Stonegate's intention, as at the date of the Offer Documentation, that it did not expect the Acquisition to impact the continued employment of employees at pubs across EIG's portfolio. The Stated Intentions further stated that, following a detailed review, there may be a small reduction in the combined group's headcount including in corporate and support functions at EIG's head office where there is duplication with Stonegate's existing functions or where the function was previously required to support EIG's public listing
In light of the COVID-19 pandemic currently affecting the market and, in particular, the closure of pubs across the EIG portfolio to comply with the requirements prescribed by the UK governmental authorities, EIG has taken certain steps to mitigate the loss in revenue arising from such market conditions and closures. One of the steps taken has been to furlough certain employees who are unable to perform their functions as a result of the closure of pubs. The current terms of such furlough arrangements meet or are more enhanced than the relevant guidelines issued by the government. EIG intends to end the furlough arrangements when appropriate and for employees to have the opportunity to return to their roles within the company at that time.
In addition, the head offices of EIG and Stonegate have been closed in line with requirements of the UK governmental authorities as employees at such head offices have been able to continue working remotely.
The contractual rights of EIG employees will otherwise continue to be honoured.
Enquiries:
Stonegate Pub Company Limited
Simon LongbottomIan Payne
Daniel Wilkinson
Tel: +44 (0) 1582 957160
Instinctif Partners (PR Adviser to Stonegate and EIG)
Justine Warren
Matthew Smallwood
Tel: +44 (0) 20 7457 2010
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