GBP301.5 million Return of Capital
31 January 2007
Tullett Prebon plc
FOR IMMEDIATE RELEASE
TULLETT PREBON PLC
£301.5 million Return of Capital
Tullett Prebon plc ("Tullett Prebon" or the "Company") today announces the
terms of a proposed £301.5 million return of capital to shareholders (the
"Return of Capital").
On 20 March 2006 the board of Collins Stewart Tullett plc, the former parent
company of Tullett Prebon, announced its intention to return at least £300
million of excess capital to its shareholders. At that time, the proposed
Return of Capital was dependent on receipt of a waiver from the consolidated
capital adequacy tests under the regulatory requirements established by the
Capital Requirements Directive. This waiver has now been granted to the Company
by the FSA.
The Return of Capital represents approximately 22.3 per cent. of the Company's
market capitalisation (based on the Closing Mid-market Price of 635.5 pence per
ordinary share on 29 January 2007). The Return of Capital is conditional on the
approval of shareholders and confirmation by the Court, and has been structured
so shareholders will receive their return in the form of a capital repayment.
Assuming the Return of Capital had been made as at 30 June 2006, on a pro forma
basis (and including costs associated with this Return of Capital and financing
fees) (i) the unaudited consolidated net assets of Tullett Prebon would have
decreased by approximately £305 million, such that the unaudited consolidated
net assets of Tullett Prebon would have been approximately £59 million and (ii)
the unaudited net debt would have been approximately £263 million.
Subject to the approval of shareholders at an extraordinary general meeting of
the Company to be held on 26 February 2007 and the confirmation of the Court,
the Company will reduce the nominal value of each ordinary share from 325 pence
to 25 pence (the "Reduction of Capital"). Part of the sum arising from such
reduction in nominal value will be repaid to shareholders and the remainder
will be credited to the Company's reserves. The Return of Capital will involve
the repayment of 142 pence per issued ordinary share. A circular providing
further details in relation to the proposed Return of Capital has been posted
to shareholders today.
The expected timetable for the Return of Capital is as follows:
Latest time for receipt of proxy form to be valid at the 9.00am on 24
extraordinary general meeting February 2007
Extraordinary general meeting 9.00am on 26
February 2007
Court hearing to confirm the Reduction of Capital 14 March 2007
Record date for determining entitlement to the Return of 6.00pm on 14
Capital March 2007
Effective date for the Reduction of Capital 15 March 2007
Credit CREST accounts with the Return of Capital on ordinary 20 March
shares held in a CREST account 2007
Despatch of cheques in respect of the Return of Capital on 20 March 2007
ordinary shares held in certificated form
Despatch of replacement share certificates for ordinary shares 20 March
2007
Enquiries
Tullett Prebon plc
Nigel Szembel, Head of Communications: +44 (0)7802 362088
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