REG - Sopheon PLC IOps Buyer Inc. - Court Sanction of Scheme of Arrangement

SopheonAnnouncement

16/02/2024 13:45

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RNS Number : 4876D  Sopheon PLC  16 February 2024

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.

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

 
16 February 2024

 

RECOMMENDED CASH OFFER

by

IOPS BUYER INC.

 

(a wholly-owned subsidiary of Wellspring Worldwide Inc.)

 

for

 

SOPHEON PLC

 

Court Sanction of Scheme of Arrangement

On 22 December 2023, the boards of Sopheon Plc ("Sopheon") and IOps Buyer Inc.
("Bidco"), a wholly-owned subsidiary of Wellspring Worldwide Inc.
("Wellspring"), which is a portfolio company of funds managed and/or advised
by Resurgens, announced that they had reached agreement on the terms of a
recommended all cash offer pursuant to which Bidco would acquire the entire
issued and to be issued share capital of Sopheon (the "Acquisition"). It is
intended that the Acquisition will be effected by means of a Court-sanctioned
scheme of arrangement of Sopheon under Part 26 of the Companies Act 2006 (the
"Scheme").

The scheme document in relation to the Scheme, including full details of the
Acquisition, was published and made available to Sopheon Shareholders on 16
January 2024 (the "Scheme Document").

 

Capitalised terms used in this announcement (the "Announcement") shall, unless
otherwise defined, have the same meanings as set out in the Scheme
Document. All references to times in this Announcement are to London, United
Kingdom.

 

On 8 February 2024, the requisite majority in number of Scheme Shareholders
present and voting either in person or by proxy at the Court Meeting,
representing not less than 75 per cent. in value of Scheme Shares present and
voting at the Court Meeting voted to approve the Scheme at the Court Meeting.
The requisite majority of Sopheon Shareholders voted to pass the Special
Resolution to implement the Scheme at the General Meeting, including, amongst
other things: (a) the amendment of Sopheon's articles of association; and (b)
the re-registration of Sopheon as a private limited company conditional on the
Scheme becoming Effective. Sopheon released an announcement to confirm the
same on 8 February 2024.

 

Further to that announcement, Sopheon is pleased to announce that the High
Court of Justice in England and Wales has today sanctioned the Scheme under
section 899 of the Companies Act 2006 pursuant to which the Acquisition is
being implemented.

 

The Scheme remains conditional on the delivery to the Registrar of Companies
of the Court Order. It is currently expected that the Effective Date of the
Scheme will be 20 February 2024, which is the date on which a copy of the
Court Order (together with a copy of the Scheme and all documents required to
be annexed thereto) is expected to be delivered to the Registrar of Companies.
The Scheme Record Time is expected to be 6.00 p.m. on 19 February 2024.

 

Applications have been made for the suspension, and subsequent cancellation,
of admission to trading of Sopheon Shares on the London Stock Exchange's AIM
Market ("AIM"). The last day for dealings in, and for the registration of
transfers of, Sopheon Shares is expected to be 19 February 2024. The
suspension of dealings in Sopheon Shares is expected to take effect from 7.30
a.m. on 20 February 2024.

 

It is expected that the cancellation of admission to trading of Sopheon Shares
on AIM will, subject to the Scheme becoming Effective, take effect at 7.00
a.m. on 21 February 2024.

 

On the Effective Date, share certificates in respect of Scheme Shares will
cease to be valid documents of title, and any entitlements to Scheme Shares
held in uncertificated form in CREST will be cancelled.

 

The expected timetable of principal events for the implementation of the
Scheme remains as set out in the appendix to the announcement made on 16
January 2024 in relation to the publication of the Scheme Document. Sopheon
will give adequate notice of any change or revision of these currently
expected dates and/or times by issuing an announcement of the revised dates
and/or times through a Regulatory Information Service, with such announcement
being made available on Sopheon's website
at https://www.sopheon.com/investors (https://www.sopheon.com/investors) .

 

A further announcement will be made when the Scheme has become Effective.

 

 

Enquiries:

 

 Sopheon                                                               via Cavendish
 Andy Michuda, Executive Chairman
 Greg Coticchia, Chief Executive Officer
 Arif Karimjee, Chief Financial Officer

 Cavendish (Nominated Adviser and Broker to the Company)               +44 (0) 20 7220 0500
 Henrik Persson
 Carl Holmes

 Abigail Kelly
 George Dollemore

 Resurgens, Wellspring and Bidco                                       via Raymond James
 Adi Filipovic
 Fred Sturgis
 Danny Carpenter

 Raymond James (Financial Adviser to Resurgens, Wellspring and Bidco)  +44 (0) 20 3798 5700
 Junya Iwamoto
 Felix Beck

 

 

King & Spalding International LLP are retained as legal advisers to
Resurgens, Wellspring and Bidco.

 

Squire Patton Boggs (UK) LLP are retained as legal adviser to Sopheon.

 

Important Notices

 

Cavendish, which is authorised and regulated in the United Kingdom by the FCA,
is acting as financial adviser to Sopheon and no one else in connection with
the matters described in this Announcement and will not be responsible to
anyone other than Sopheon for providing the protections offered to clients of
Cavendish or for providing advice in connection with any matter referred to in
this Announcement. Neither Cavendish nor any of its affiliates (nor their
respective directors, officers, employees or agents) owes or accepts any duty,
liability or responsibility whatsoever (whether direct or indirect, whether in
contract, in tort, under statute or otherwise) to any person who is not a
client of Cavendish in connection with this Announcement, any statement
contained herein, the Scheme or otherwise. No representation or warranty,
express or implied, is made by Cavendish as to the contents of this
Announcement.

 

Raymond James, which is authorised and regulated in the United Kingdom by the
FCA, is acting as financial adviser to Resurgens, Wellspring and Bidco and
no-one else in connection with the matters described in this Announcement and
will not be responsible to anyone other than Resurgens, Wellspring or Bidco
for providing the protections afforded to clients of Raymond James nor for
providing advice in connection with the matters referred to herein. Neither
Raymond James nor any of its affiliates owes or accepts any duty, liability or
responsibility whatsoever (whether direct or indirect, whether in contract, in
tort, under statute or otherwise) to any person who is not a client of Raymond
James in connection with this Announcement, any statement contained herein,
the Acquisition or otherwise.

 

Further Information

 

This Announcement is for information purposes only and is not intended to and
does not constitute, or form any part of, an offer to sell or subscribe for or
any invitation to purchase or subscribe for any securities or the solicitation
of any vote or approval in any jurisdiction pursuant to the Acquisition or
otherwise. The Acquisition will be made solely through and on the terms set
out in the Scheme Document (or, in the event that the Acquisition is to be
implemented by means of a Takeover Offer, the offer document) and the
accompanying Forms of Proxy, which will contain the full terms and conditions
of the Acquisition, including details of how to vote in respect of the
Acquisition. Any approval, decision or other response to the Acquisition
should be made only on the basis of the information in the Scheme Document.
Scheme Shareholders are strongly advised to read the formal documentation in
relation to the Acquisition once it has been despatched.

 

The statements contained in this Announcement are made as at the date of this
Announcement, unless some other time is specified in relation to them, and
service of this Announcement shall not give rise to any implication that there
has been no change in the facts set forth in this Announcement since such
date.

 

Overseas Shareholders

 

This Announcement has been prepared for the purpose of complying with English
law, the AIM Rules and the Code 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 of jurisdictions outside the United
Kingdom.

 

The laws of the relevant jurisdictions may affect the availability of the
Acquisition to persons who are not resident in the United Kingdom. Persons who
are not resident in the United Kingdom, or who are subject to laws of any
jurisdiction other than the United Kingdom, should inform themselves about,
and observe any applicable requirements. Any person (including, without
limitation, nominees, trustees and custodians) who would, or otherwise intends
to, forward this Announcement, the Scheme Document or any accompanying
document to any jurisdiction outside the United Kingdom should refrain from
doing so and seek appropriate professional advice before taking any action. In
particular, the ability of persons who are not resident in the United Kingdom
to vote their Sopheon Shares at the Court Meeting or the General Meeting, or
to execute and deliver Forms of Proxy appointing another to vote their Sopheon
Shares in respect of the Court Meeting or the General Meeting on their behalf,
may be affected by the laws of the relevant jurisdiction in which they are
located.

 

Any failure to comply with the applicable legal or regulatory requirements may
constitute a violation of the laws and/or regulations of any such
jurisdiction. To the fullest extent permitted by applicable law, the companies
and persons involved in the Acquisition disclaim any responsibility and
liability for the violation of such restrictions by any person.

 

The Acquisition will not be made, directly or indirectly, in or into or by use
of the mails or any other means or instrumentality (including, without
limitation, telephonic or electronic) of interstate or foreign commerce of, or
any facility of a national, state or other securities exchange of, a
Restricted Jurisdiction, and the Acquisition will not be capable of acceptance
by any such use, means, instrumentality or facility or from within a
Restricted Jurisdiction. Accordingly, copies of this Announcement and formal
documentation relating to the Acquisition are not being, and must not be,
directly or indirectly, mailed or otherwise forwarded or distributed in, into
or from a Restricted Jurisdiction and persons receiving this Announcement
(including custodians, nominees and trustees) must not distribute or send it
into or from a Restricted Jurisdiction. In the event that the Acquisition is
implemented by way of a Takeover Offer and extended into the US, Bidco will do
so in satisfaction of the procedural and filing requirements of US securities
laws at that time, to the extent applicable thereto. The Acquisition relates
to the shares of a company incorporated in England and it is proposed to be
made by means of a scheme of arrangement provided for under English law. The
Scheme will relate to the shares of a UK company that is a "foreign private
issuer" as defined under Rule 3b-4 under the US Exchange Act. A transaction
effected by means of a scheme of arrangement is not subject to any shareholder
vote, proxy solicitation and tender offer rules under the US Exchange Act.

 

Accordingly, the Scheme is subject to the disclosure requirements and
practices applicable in the UK to schemes of arrangement, which differ from
the disclosure requirements and practices of US shareholder vote, proxy
solicitation or tender offer rules. Financial information included in the
relevant documentation will have been prepared in accordance with accounting
standards applicable in the UK and may not be comparable to the financial
information of, or the accounting standards applicable to, US companies.
However, if Bidco were to elect to implement the Acquisition by means of a
Takeover Offer, such Takeover Offer shall be made in compliance with all
applicable laws and regulations, including section 14(e) of the US Exchange
Act and Regulation 14E thereunder, if applicable. Such Takeover Offer would be
made in the US by Bidco and no one else. In addition to any such Takeover
Offer, Bidco, certain affiliated companies and the nominees or brokers (acting
as agents) may make certain purchases of, or arrangements to purchase, shares
in Sopheon outside such Takeover Offer during the period in which such
Takeover Offer would remain open for acceptance. If such purchases or
arrangements to purchase are made they would be made outside the United States
in compliance with applicable law, including the US Exchange Act. It may be
difficult for a US-based investor to enforce his or her rights and any claim
he or she may have arising under US securities laws, since the Scheme relates
to the shares of a company located in the UK, and some or all of its officers
and directors may be residents of non-US jurisdictions. A US-based investor
may not be able to sue a company located in the UK, or its officers or
directors, in a foreign court for alleged violations of US securities laws,
and it may be difficult to compel a foreign company and its affiliates to
subject themselves to a US court's judgment.

 

Forward-looking statements

 

This Announcement, oral statements made regarding the Acquisition, and other
information published by Sopheon, Bidco, Wellspring and Resurgens may contain
certain "forward-looking statements" with respect to Sopheon, Bidco,
Wellspring and Resurgens. These forward-looking statements can be identified
by the fact that they do not relate only to historical or current facts.
Forward-looking statements often use words such as "anticipate", "target",
"expect", "estimate", "intend", "plan", "goal", "believe", "will", "may",
"should", "would", "could" or other words or terms of similar meaning or the
negative thereof. Forward-looking statements include statements relating to,
for example, 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 of Resurgens, Wellspring and/or Bidco and the expansion
and growth of Sopheon and potential synergies resulting from the Acquisition;
and (iii) the effects of government regulation on the business of Sopheon.

 

These forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause actual results, performance or
developments to differ materially from those expressed in or implied by such
forward-looking statements. These forward-looking statements are based on
numerous assumptions regarding present and future strategies and environments.
None of Resurgens, Wellspring, Bidco or Sopheon, nor any of their respective
associates, directors, officers, employees or advisers, provides 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. You are cautioned not to place undue reliance on such
forward-looking statements, which speak only as of the date hereof. All
subsequent oral or written forward-looking statements attributable to
Resurgens, Wellspring, Bidco or Sopheon or any person acting on their behalf
are expressly qualified in their entirety by the cautionary statement above.
Should one or more of these risks or uncertainties materialise, or should
underlying assumptions prove incorrect, actual results may vary materially
from those described in this Announcement. None of Resurgens, Wellspring,
Bidco or Sopheon assume any obligation to update publicly or revise
forward-looking or other statements contained in this Announcement, whether as
a result of new information, future events or otherwise, except to the extent
legally required.

 

Publication on website

 

In accordance with Rule 26.1 of the Code, a copy of this Announcement will be
made available (subject to certain restrictions relating to persons resident
in Restricted Jurisdictions), free of charge, on Sopheon's website at
www.sopheon.com/investors and on Bidco's website at
https://offer.wellspring.com/news by no later than 12:00 noon on the Business
Day following this Announcement. Neither the contents of this website nor the
content of any other website accessible from hyperlinks on such websites is
incorporated into, or forms part of, this Announcement.

 

Requesting hard copies

 

In accordance with Rule 30.3 of the Code, a person so entitled may request a
hard copy of this Announcement, free of charge, by contacting Sopheon's
registrar, Link Group on +44 (0)371 664 0321. 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. The helpline is
open between 9:00 a.m. to 5:30 p.m., Monday to Friday excluding public
holidays in England and Wales.  Please note that Link Group cannot provide
any financial, legal or tax advice and calls may be recorded and monitored for
security and training purposes.

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. In accordance with Rule 30.3 of the Code, a person so
entitled may also request that all future documents, announcements and
information to be sent to them in relation to the Acquisition should be in
hard copy form.

 

Disclosure requirements of the Code

 

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of
any class of relevant securities of an offeree company or of any securities
exchange offeror (being any offeror other than an offeror in respect of which
it has been announced that its offer is, or is likely to be, solely in cash)
must make an Opening Position Disclosure following the commencement of the
offer period and, if later, following the announcement in which any securities
exchange offeror is first identified. An Opening Position Disclosure must
contain details of the person's interests and short positions in, and rights
to subscribe for, any relevant securities of each of (i) the offeree company
and (ii) any securities exchange offeror(s). An Opening Position Disclosure by
a person to whom Rule 8.3(a) applies must be made by no later than 3:30 p.m.
(London time) on the 10th business day following the commencement of the offer
period and, if appropriate, by no later than 3:30 p.m. (London time) on the
10th business day following the announcement in which any securities exchange
offeror is first identified. Relevant persons who deal in the relevant
securities of the offeree company or of a securities exchange offeror prior to
the deadline for making an Opening Position Disclosure must instead make a
Dealing Disclosure.

 

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1%
or more of any class of relevant securities of the offeree company or of any
securities exchange offeror must make a Dealing Disclosure if the person deals
in any relevant securities of the offeree company or of any securities
exchange offeror. A Dealing Disclosure must contain details of the dealing
concerned and of the person's interests and short positions in, and rights to
subscribe for, any relevant securities of each of (i) the offeree company and
(ii) any securities exchange offeror(s), save to the extent that these details
have previously been disclosed under Rule 8. A Dealing Disclosure by a person
to whom Rule 8.3(b) applies must be made by no later than 3:30 p.m. (London
time) on the business day following the date of the relevant dealing.

 

If two or more persons act together pursuant to an agreement or understanding,
whether formal or informal, to acquire or control an interest in relevant
securities of an offeree company or a securities exchange offeror, they will
be deemed to be a single person for the purpose of Rule 8.3.

 

Opening Position Disclosures must also be made by the offeree company and by
any offeror and Dealing Disclosures must also be made by the offeree company,
by any offeror and by any persons acting in concert with any of them (see
Rules 8.1, 8.2 and 8.4).

 

Details of the offeree and offeror companies in respect of whose relevant
securities Opening Position Disclosures and Dealing Disclosures must be made
can be found in the Disclosure Table on the Takeover Panel's website at
www.thetakeoverpanel.org.uk, including details of the number of relevant
securities in issue, when the offer period commenced and when any offeror was
first identified. You should contact the Panel's Market Surveillance Unit on
+44 (0)20 7638 0129 if you are in any doubt as to whether you are required to
make an Opening Position Disclosure or a Dealing Disclosure.

 

Independent advice

 

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 appropriately authorised
independent financial adviser.

 

 

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