Revised Agreement Summary-Mitie Group Plc/Source8

RNS Number : 1622L

MITIE Group PLC

14 July 2017

 

14 July 2017

Mitie Group plc ("Mitie")

Source8 Management Agree Terms to Waive Put Rights in Exchange for Cash/Mitie Deferred Shares Mix.

Mitie has entered into a revised agreement with the management and minority's shareholders of Source8 - a leading advisor on the implementation of Real Estate, Technology and Risk Management solutions - to acquire their remaining 49% of Source8 shares in exchange for cash consideration of £3m plus the issuance of 2,196,708 shares, of which 1,838,028 retained shares are conditional upon management remaining in Mitie until March 2019. 

Under the terms of the original agreement with management (when Mitie acquired an initial 51% of Source8 shares in November 2014), management were entitled to exercise a put option in respect of their remaining 49% of Source8 shares at any time between 2017 and 2019 for a further consideration payable in cash up to a maximum of £12.5m. Under the terms of that original agreement, management would have been free to leave Mitie at any time following the exercise of their put option.  This revised agreement minimises the cash outflow for Mitie and, more importantly, secures the participation of the industry leading management team until at least March 2019.  Management's holding in Mitie shares also ensures that their interests are fully aligned with that of the Mitie Group as a whole.

Source8 (which was formed in December 2003) has grown its consultancy capabilities over the last 3 years since Mitie acquired its initial stake and is now spearheading Mitie's "Connected Workspace" and technology-led strategy. Source8 lead our Professional Service division (2017 Revenue: £91m) and are increasingly integrating Mitie's Sustainability, Well-Being, Portfolio Optimisation, Risk-Based Analytics, Infrastructure Resilience and User Experience capabilities into Source8's "Connected Workspace" offer to clients.

Application has been made to the Financial Conduct Authority and the London  Stock Exchange plc for 2,196,708 Ordinary shares of 2.5p each ("Shares") to be admitted to the Official List.

It is expected that admission will be granted on 19 July 2017 and trading will commence on 19 July 2017.

The Shares will rank pari passu with the existing issued Shares of the Company.
 

For further information, contact:

John Telling

Group Corporate Affairs Director, Mitie Group plc

T: [phone]                M: [phone]                 E: [e-mail]

Anna Chen

Investor Relations Manager, Mitie Group plc

T: [phone]                M: [phone]                E: [e-mail]

Notes for editors

About Mitie Group

Mitie is a FTSE 250 business providing a wide range of facilities management and professional services, from real estate consultancy, project management, energy consultancy, compliance, risk assessment and security systems to cleaning, catering, engineering, technical and environmental services and a range of specialist services.

We work in partnership with organisations to deliver long-term savings, managing and maintaining some of the nation's most recognised landmarks for a range of blue-chip public and private sector customers. 

We are the UK's largest Facilities Management Company employing some 60,000 people across the country.

   Find out more at www.mitie.com

 

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