Termination of Proposed Disposal

RNS Number : 5508N

SIG PLC

21 May 2020

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

LEI: 213800VDC1BKJEZ8PV53

21 May 2020

SIG plc

Termination of Proposed Disposal of Building Solutions to Kingspan Group

SIG plc ("SIG" or the "Company"), a leading supplier of specialist building materials to trade customers across Europe, announced on 7 October 2019 the disposal of Building Solutions (National) Limited ("Building Solutions") to Kingspan Group, a global leader in building envelope solutions based in Ireland (the "Disposal") for a consideration of 37.5m on a cash free, debt free basis. The Disposal was conditional upon the approval of the UK Competition & Markets Authority ("CMA"). The CMA referred the Disposal for a Phase 2 investigation on 21 April 2020, following the outcome of its Phase 1 decision on 7 April 2020.

The sale and purchase agreement regarding the Disposal (the "Agreement") expires on 7 July 2020. It is anticipated that the CMA's Phase 2 investigation would conclude in October 2020 and accordingly the date in the Agreement would need to be extended in order for the Phase 2 investigation to be carried out.

As a result of the prevailing market conditions, it has not been possible for the Company and Kingspan to agree commercial terms for the extension of the Agreement. Accordingly, the parties have agreed to terminate the Agreement with immediate effect and the Disposal therefore will not proceed.

The Company is currently reviewing a number of options regarding the Building Solutions business and will provide further updates when appropriate.

Contacts

FTI Consulting	[phone]
Richard Mountain Susanne Yule

This announcement contains inside information. The person responsible for making this notification is Kulbinder Dosanjh, Company Secretary.

Cautionary statement

This announcement is not intended to, and does not constitute, or form part of, any offer to sell or an invitation to purchase or subscribe for any securities or a solicitation of any vote or approval in any jurisdiction. The information contained in this announcement is not for release, publication or distribution to persons in any jurisdiction where to do so might constitute a violation of local securities laws or regulations.

 

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