Conversion/Redemption of Inco

RNS Number : 8018H

Stobart Group Limited

01 March 2010

 

Stobart Group Limited

('Stobart' or 'the Group')

Monday 1 March 2010

Announcement

Stobart Group Limited (the "Company") will today write to the holders of the 5,271,678 income shares in the Company (the "Income Shares") to inform them of the options open to them.

In accordance with the Company's Articles of Association, on 31 March 2010, holders of the Income Shares will have the following options:

1.   Convert to Ordinary Shares in Stobart Group Limited at a conversion rate of 0.854 Ordinary Shares for each Income Share. At the closing mid-market share price on 26 February 2010 of 133p per Ordinary Share, this represented a conversion discount of approximately 12%. The conversion would be effective as at 9 April 2010; or

2.   Redeem the Income Shares for £1 cash each. Redemption proceeds would be paid on 9 April 2010.

If Income Shareholders choose neither option, the Income Shares will continue under the current terms, although it should be noted that after 31 March 2010, the Company will have the right to compulsorily redeem all Income Shares for £1 cash per Income Share at any time giving 14 days notice in writing, as set out in the Articles.

ENQUIRIES:

Stobart Group Ben Whawell, Chief Financial Officer

01925 605 400

 

END

 

 

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