REG - SIG PLC - Termination of Proposed Disposal

SIGAnnouncement

21/05/2020 07:00

RNS Number : 5508N
  
SIG PLC
  
21 May 2020
  
 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION 
 
LEI: 213800VDC1BKJEZ8PV53
 
21 May 2020
 
SIG plc
Termination of Proposed Disposal of Building Solutions to Kingspan Group
SIG plc ("SIG" or the "Company"), a leading supplier of specialist building materials to trade customers across Europe, announced on 7 October 2019 the disposal of Building Solutions (National) Limited ("Building Solutions") to Kingspan Group, a global leader in building envelope solutions based in Ireland (the "Disposal") for a consideration of £37.5m on a cash free, debt free basis. The Disposal was conditional upon the approval of the UK Competition & Markets Authority ("CMA"). The CMA referred the Disposal for a Phase 2 investigation on 21 April 2020, following the outcome of its Phase 1 decision on 7 April 2020. 
 
The sale and purchase agreement regarding the Disposal (the "Agreement") expires on 7 July 2020. It is anticipated that the CMA's Phase 2 investigation would conclude in October 2020 and accordingly the date in the Agreement would need to be extended in order for the Phase 2 investigation to be carried out.
 
As a result of the prevailing market conditions, it has not been possible for the Company and Kingspan to agree commercial terms for the extension of the Agreement. Accordingly, the parties have agreed to terminate the Agreement with immediate effect and the Disposal therefore will not proceed.
 
The Company is currently reviewing a number of options regarding the Building Solutions business and will provide further updates when appropriate.
 
Contacts













FTI Consulting


+44 (0) 20 3727 1340




Richard Mountain
Susanne Yule







 
This announcement contains inside information. The person responsible for making this notification is Kulbinder Dosanjh, Company Secretary.
 
Cautionary statement
 
This announcement is not intended to, and does not constitute, or form part of, any offer to sell or an invitation to purchase or subscribe for any securities or a solicitation of any vote or approval in any jurisdiction. The information contained in this announcement is not for release, publication or distribution to persons in any jurisdiction where to do so might constitute a violation of local securities laws or regulations.
 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
  END
 
 
DISAMMMTMTTTTJM