Response to recent press speculation

RNS Number : 1141Z

Shanks Group PLC

24 May 2016

 

THIS ANNOUNCEMENT AND THE INFORMATION HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION TO PERSONS, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BREACH ANY APPLICABLE LAW. NO PUBLIC OFFER OF SECURITIES IS BEING MADE BY VIRTUE OF THIS ANNOUNCEMENT.

24 May 2016

Shanks Group plc

("Shanks", the "Company" or the "Group")

Response to recent press speculation

The Board of Shanks notes the recent press speculation and confirms that it is contemplating the possible acquisition of the Van Gansewinkel Groep BV, a leading privately-owned waste collection and recycling business in the Netherlands and Belgium ("Van Gansewinkel").

After a period of preliminary due diligence, Shanks will shortly be submitting an updated, indicative non-binding proposal to the Supervisory Board of Van Gansewinkel for consideration. Accordingly, there can be no certainty that any transaction will occur nor as to the terms of any transaction.

As the possible acquisition of Van Gansewinkel by Shanks has been deemed a reverse takeover by the FCA and Van Gansewinkel is not subject to a public disclosure regime, Shanks has requested a suspension of its shares in accordance with paragraph 5.6.6 of the Listing Rules.

A key part of Shanks' strategy is to actively manage the Group's portfolio to improve returns and accelerate growth through the disposal of non-core assets and/or the acquisition of value-enhancing businesses, particularly where strong synergies exist with existing Shanks businesses. Given the structure and conditions in the Benelux Solid Waste market, the Board believes that the acquisition of Van Gansewinkel has the potential to transform and enhance the Company's position in this market. The combination of the two businesses would create a leading player, with complementary strengths across all market sectors.

Given the strategic and commercial rationale for a combination of the businesses and potential synergies, the Board believes that it is in the best interests of shareholders to investigate the possible acquisition of Van Gansewinkel despite the resultant temporary suspension of the Company's shares.

The Board will remain disciplined on value and will only pursue the acquisition of Van Gansewinkel if it delivers attractive returns for shareholders. If a transaction were to proceed, Shanks would intend to finance the acquisition through a combination of new debt facilities, equity consideration to the vendors and an equity fund raising.

The period of suspension of the Company's shares will be kept under review and a further statement will be made in due course.

Enquiries:

Shanks Group plc

Peter Dilnot, Group Chief Executive Toby Woolrych, Group Finance Director

[phone]

Brunswick Group 

Mike Smith	[phone]
Jon Drage

IMPORTANT NOTICE:

The information contained in this announcement is not for release, publication or distribution to persons in whole or in part, directly or indirectly in or into Australia, Canada, Japan, the Republic of South Africa or the United States or in any jurisdiction where to do so would breach any applicable law. No public offer of securities is being made by virtue of this announcement.

This announcement has been prepared for the purposes of complying with the applicable law and regulation of the United Kingdom 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 and regulations of any jurisdiction outside of the United Kingdom.

This announcement is not intended to, and does not constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities pursuant to this announcement or otherwise.

This announcement has been issued by and is the sole responsibility of the Company.

This announcement may include statements that are, or may be deemed to be, "forward looking statements". These forward looking statements may be identified by the use of forward looking terminology, including the terms "believes", "estimates", "plans", "projects", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward looking statements include all matters that are not historical facts and involve predictions.

Forward looking statements may and often do differ materially from actual results. Any forward looking statements reflect the Group's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Group's or Van Gansewinkel's business, results of operations, financial position, liquidity, prospects, growth or strategies and the industry in which it operates.

Forward looking statements speak only as of the date they are made and cannot be relied upon as a guide to future performance. Save as required by law or regulation, the Company disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements in this announcement that may occur due to any change in its expectations or to reflect events or circumstances after the date of this announcement.

Except as explicitly stated, neither the content of the Group's nor Van Gansewinkel's website, nor any website accessible by hyperlinks on the Group's or Van Gansewinkel's website is incorporated in, or forms part of, this announcement.

 

END

 

 

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