Offer Update

RNS Number : 2705I

Shanks Group PLC

09 March 2010

 



The Board of Shanks Group PLC ("Shanks" or the "Group") announces that it has ended discussions with Carlyle Europe Partners III Participations S.à r.l. SICAR, a fund managed by The Carlyle Group ("Carlyle"), about a possible offer for Shanks.

As previously announced, the Group has been in discussions with a private equity firm, subsequently confirmed as Carlyle, since its approach in October 2009.  During this period, Shanks engaged constructively with Carlyle and their advisers, who were granted extensive access both to information on the Group and its key personnel across Europe.  At a meeting yesterday between the Chairman of Shanks and Carlyle, a final price indication of 120p cash per share was proposed by Carlyle for all the issued share capital of Shanks.  The Board of Shanks has subsequently met and concluded that it is unwilling to recommend an offer at such a level and accordingly that further discussions with Carlyle are not in the interests of Shanks shareholders.

The Group remains committed to a focused strategy around its three principal growth areas of recycling, organic processing and UK PFI.  Whilst trading conditions for the waste industry across Europe remain challenging reflecting the weak macro-economic environment, the Board is very confident in the Group's longer term prospects.  A combination of compelling drivers for the waste industry, improved operational and balance sheet gearing and recent decisive action by the strengthened management team positions the Group for attractive medium term growth.

Commenting today, Adrian Auer, Chairman of Shanks, said: "The Board's response to the approach from Carlyle has always been about price.  Although the timing of their approach was not of our choosing, we have engaged fully and professionally, but Carlyle has failed to offer a price which (in the view of the Board) properly reflects the value of the Group.  Shanks is a well-managed group with good strategic positioning in the evolving European waste markets and the Board is confident that the Group can deliver attractive growth in shareholder value over the medium term."

This announcement has not been made with the agreement of Carlyle, and if appropriate either Carlyle or Shanks may make further announcements. 

For the purposes of the Takeover Code, Shanks remains in an Offer Period.

Enquiries:

Shanks Group PLC                [phone]

Tony McGarahan, Corporate Communications Adviser

Tulchan Communications      [phone]

John Sunnucks

David Allchurch

Stephen Malthouse

In accordance with Rule 19.11 of the Code, a copy of this announcement will be published on the Shanks website: http://www.shanksplc.co.uk/irol-rns

 

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