End of Offer Period

RNS Number : 0409Y

Spark Ventures PLC

26 August 2009

 



SPARK Ventures plc

('SPARK' or the 'Company')

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

End of Offer Period

The Company notes the announcement today by Chamonix Private Equity LLP ('Chamonix') that Chamonix does not intend to make an offer for the shares of the Company. Accordingly, the Company is no longer in an offer period for the purposes of the City Code on Takeovers and Mergers (the 'Code').

The Non-Executive Directors of the Company further note the statement by Chamonix that 'Chamonix made an alternative conditional indicative cash offer to the board of Spark to acquire its investment portfolio and the Querist management contracts' 

The Non-Executive Directors of the Company confirm that they have recently held discussions with Chamonix in which Chamonix made a highly conditional proposal to acquire Spark's investment portfolio and third party fund management business.  Chamonix does not at present have the funds available to complete such an offer, and would be dependent on Chamonix seeking to raise, following its extensive due diligence, the necessary funds from third party investors. The Non-Executive Directors of the Company have been informed that Chamonix has not completed any substantial transaction to purchase a portfolio of VC assets since 2006.  Chamonix also sought a substantial 'inducement' fee arrangement from Spark and that Spark would enter into an 'exclusivity and non-solicitation' agreement with Chamonix. 

The Non-Executive Directors of the Company are mindful that at Spark's EGM on 7 August 2009, shareholders voted overwhelmingly in favour of an orderly realisation of Spark's investment portfolio over the period to 31 March 2014 and of the need on behalf of Spark's shareholders to ensure the maximisation of the value of such assets, rather than disposing now at a discount to book value.

Given the above circumstances, the uncertainty that the process would bring and the Non-Executive Directors' belief that it would be inappropriate to meet Chamonix's demand for a substantial 'inducement' fee arrangement and exclusivity, the Non-Executive Directors of the Company have concluded that it would not, at present, be in Spark's best interests to pursue discussions with Chamonix further.

The Non-Executive Directors of the Company continue to explore expressions of interest in certain assets of the Company which may represent alternative transactions to the previously announced proposed management buyout of the Company's fund management business. There can be no certainty that any such alternative transaction will be proposed or completed.

A further announcement will be made as and when appropriate.

For further information, please contact:

SPARK Ventures plc 

David Potter 

020 7851 7777

Collins Stewart Europe Limited (Nomad) 

Hugh Field

Stewart Wallace

020 7523 8350

Capital MS&L

Annabel O'Connor

Wendy Svirakova

020 7307 5330

Collins Stewart Europe Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting exclusively for SPARK and no-one else in connection with the matters set out in this announcement and, accordingly, will not be responsible to anyone other than SPARK for providing the protections offered to clients of Collins Stewart Europe Limited or for providing advice in relation to the matters set out in this announcement, or any matter referred to herein.  No representation or warranty, express or implied, is made by Collins Stewart Europe Limited as to any of the contents of this announcement (without limiting the statutory rights of any person to whom this announcement is issued).

 

END

 

 

MSCDGGZRMVMGLZM