RNS Number : 2459V
27 May 2008
Vanco plc (“Vanco” or “the Company”)
Sale of Vanco Group Limited following appointment of Vanco administrator
Following the announcement of the suspension of the Company's shares on 6 May 2008, the Board of Vanco has explored all financial and strategic options available to the business in the light of its adverse financial position. In this regard, the Board has been working closely with its secured creditors and its advisers with a view to maximising value to the Company's stakeholders.
The Board now announces that Simon Granger and Chad Griffin of FTI Consulting Limited have been appointed joint administrators of Vanco and that they have sold Vanco Group Limited ('VGL'), the holding company of Vanco's operating subsidiaries other than Vanco Direct USA, to a wholly owned subsidiary of Reliance Globalcom Ltd., an enterprise of Reliance Anil Dhirubhai Ambani Group. Vanco Direct USA, which owns Universal Access, continues to operate as normal.
Reliance Globalcom is a subsidiary of Reliance Communications (RCOM), India's largest integrated telecommunications service provider. Reliance Communications is the flagship company of the Reliance Anil Dhirubhai Ambani Group, which has a market capitalisation of over US$75bn, annual cash flows of US$2.8bn, net profit of US$1.9bn and zero net debt.
Reliance Globalcom will integrate the Vanco business into its organisation. Vanco and Reliance have an absolute commitment to continue to deliver and improve the service we provide to our customers. Going forward, Vanco will take advantage of Reliance Globalcom's 40 Countries Global Service Delivery Platform comprising 77000 Kms of Submarine Cable, Data Centres, over 200 Carrier customers and significant presence in US with 1000+ enterprise customers and world class Managed Enthernet services.
It is unlikely that any value will return to Vanco's shareholders.
Vanco plc Andrew Coppel (Chief Restructuring Officer)
John Mumford (Senior Independent Director)
VGL Mark Thompson (Director)
Peter Johnston (Finance Director)
Wayne Churchill (Director)
All of 0208 636 1700
Biddicks Katie Tzouliadis - 07771 66 33 80
Sophie Lane - 0207 448 1000
For FTI Consulting Limited
Financial Dynamics Louisa Hollins 0207 269 7108
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