Response to Recent Press Speculation

RNS Number : 4180S

Phoenix Group Holdings

20 November 2011

 



Phoenix Group Responds to Recent Press Speculation

The Board of Phoenix Group Holdings ("Phoenix") notes recent press speculation and confirms that it has received a number of approaches regarding a possible transaction with the Company.

The Board has held discussions with Resolution Limited concerning a possible combination of their respective businesses, however these discussions have now terminated.

Phoenix confirms that it has also received certain other approaches concerning potential offers for the Company, including from CVC Capital Partners ("CVC").  The Board is continuing to consider whether CVC's approach may form the basis of an offer that is appropriate to recommend to Phoenix's shareholders, although there can be no certainty that any approach will lead to an offer being made.  Further statements will be made if and when appropriate.

Commenting on these approaches, Ron Sandler, Chairman of Phoenix, said:

"As we outlined at the time of our Interim Management Statement earlier this month, Phoenix is a resilient business with robust and predictable long term cash flows.  The Board believes that Phoenix is in a strong position to deliver substantial value and has a compelling business model.  Naturally, the Board is obliged to evaluate any proposals that are received, and will update shareholders as appropriate."

On November 8, at the time of its Q3 Interim Management Statement, Phoenix announced:

·    Cash generation of £603 million up to 8 November 2011

·    Confirmation that Life Company free surplus generation is consistent with a result within the £750-850 million target range for holding company cash generation

·    £1.1 billion of net new third party money in Ignis

·    Stable Insurance Group Directive (IGD) surplus, sustained at an estimated £1.1 billion despite market volatility

·    Early achievement of gearing reduction target for 2011, bringing gearing below 50% to 48%

Enquiries

Media                                                                         Investors

Daniel Godfrey                                                            Lorraine Rees

Director of Corporate Communications                      Head of Investor Relations

+ 44 (0) 20 7489 4517                                                 + 44 (0) 20 7489 4456

+ 44 (0) 7894 937 890                                                 + 44 (0) 7872 413 277

PR Advisers - Maitland

Neil Bennett                            [phone] 

Tom Buchanan                        [phone]

Tom Eckersley                         [phone]

Notes

1.   Phoenix Group is the UK's largest specialist consolidator of closed life funds with over six million customers and £67.5 billion of assets under management in its wholly owned asset management business, Ignis Asset Management.

2.   The City Code on Takeovers and Mergers - By virtue of its status as a Cayman Islands incorporated company, the City Code on Takeovers and Mergers (the City Code) does not apply to Phoenix Group Holdings.  Phoenix Group Holdings has incorporated certain provisions into its articles of association (Articles) to reflect certain provisions of the City Code.  The provisions do not, however, provide shareholders with the full protections offered by the City Code.  Shareholders are reminded that the Panel on Takeovers and Mergers (the Panel) does not have responsibility for ensuring compliance with the City Code and is not able to answer shareholders' queries in relation to Phoenix Group Holdings.  In particular, public disclosures consistent with the provision of Rule 8.3 of the City Code should not be e-mailed to the Panel, but released directly through a Regulatory Information Service.

 

END

 

 

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