Update on Formal Sale Process & Current Trading

RNS Number : 3726E

Renishaw PLC

07 July 2021

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Renishaw plc ("Renishaw" or the "Company")

Update on Formal Sale Process

&

Current Trading

7 July 2021

Further to the announcement of 2 March 2021 commencing a Formal Sales Process under the City Code on Takeovers and Mergers (the "Takeover Code") by the Company (the "FSP"), the Board of Renishaw announces that it has unanimously decided to conclude the FSP.

The Board carefully reviewed a number of proposals with its advisers and unanimously concluded that none would meet the Board's objectives of delivering an outcome that satisfactorily met the interests of all stakeholders.

Sir David McMurtry and John Deer have indicated to the Board they remain committed to Renishaw and have no intention of selling their shares on the market for the foreseeable future.

Current trading

We have seen a strong trading performance in the final quarter of the financial year ended 30 June 2021 and finished the year with a record order book. We now expect revenue for the year ended 30 June 2021 to be in the range of £562m to £567m and adjusted profit before tax to be in the range of £116m to £121m.

Sir David McMurtry, Executive Chairman of Renishaw, and John Deer, Non-Executive Deputy Chairman, commented:

"At the start of this process we made it very clear that, with the Board, we were focused on ensuring that we find the right new owner for our business.  Whilst the formal sale process did not result in a new owner for Renishaw, we are satisfied that it ensured a thorough and rigorous process that enabled us to evaluate a wide range of potential buyers.

We remain fully committed to Renishaw and have indicated to the Board that we have no intention of selling our shares on the market for the foreseeable future. We continue to enjoy good health and as we consider the future of our shareholdings in due course, we intend to follow an orderly process that continues to take into account the interests of all stakeholders.

Renishaw is a very special business with a highly successful business model and a very exciting future. We would like to thank all our employees for their dedication to the Company."

Sir David Grant, Senior Independent Non-Executive Director at Renishaw, commented:

"The Board conducted a formal sale process to investigate whether we would receive a proposal from a potential new owner that would be in the interests of all stakeholders.  We received a number of proposals that we considered carefully but the Board has concluded that none of the proposals met our objectives. 

I am pleased that the founders have indicated their continuing commitment to Renishaw. The business is in a strong strategic and financial position.  Renishaw and its stakeholders have every reason to look to the future with optimism and confidence.  On behalf of the Board, I would like to thank our employees for their continued focus and commitment to Renishaw."

The person responsible for release of this announcement on behalf of the Company is Jacqueline Conway, General Counsel and Company Secretary.

Following this announcement, the Company is no longer considered to be in an "offer period" as defined in the Takeover Code and the requirement to make disclosures under Rule 8 of the Takeover Code has now ceased.

Contact details:
UBS Investment Bank (Sole Financial Adviser and Corporate Broker)	[phone]
Rahul Luthra
FTI Consulting (Media)	[phone]
Edward Bridges

Further information  

UBS AG London Branch ("UBS") is authorised and regulated by the Financial Market Supervisory Authority in Switzerland. It is authorised by the Prudential Regulation Authority and subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority in the United Kingdom. UBS provided financial and corporate broking advice to Renishaw and no one else in connection with the contents of this announcement. In connection with such matters, UBS will not regard any other person as its client, nor will it be responsible to any other person for providing the protections afforded to its clients or for providing advice in relation to the contents of this announcement or any other matter referred to herein.  

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 whether pursuant to this announcement or otherwise.

The release, publication or distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe such restrictions. Any failure to comply with such restrictions may constitute a violation of the securities law of any such jurisdiction.

 

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