NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION
THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS, A PROSPECTUS EQUIVALENT DOCUMENT OR A PROSPECTUS EXEMPT DOCUMENT AND LTG SHAREHOLDERS SHOULD NOT MAKE ANY DECISION IN RELATION TO THE ROLLOVER SECURITIES EXCEPT ON THE BASIS OF INFORMATION IN THE SCHEME DOCUMENT
THIS ANNOUNCEMENT CONTAIN INSIDE INFORMATION
FOR IMMEDIATE RELEASE
28 January 2025
RECOMMENDED FINAL*[1] OFFER
for
Learning Technologies Group plc ("LTG")
by
Leopard UK Bidco Limited ("Bidco")
(a newly formed company owned by funds managed by GASC APF, L.P. and certain of its managed funds (including Atlantic Park), accounts and/or affiliates ("General Atlantic"))
Offer Update & No Increase Statement
On 4 December 2024, the board of Bidco and the Independent LTG Directors announced (the "Original Announcement") that they had reached agreement on the terms and conditions of a recommended acquisition by Bidco of the entire issued, and to be issued, ordinary share capital of LTG (the "Acquisition"). The Acquisition is being implemented by means of a Court-approved scheme of arrangement between LTG and LTG Shareholders (the "Scheme") under Part 26 of the Companies Act 2006 (the "Companies Act").
The scheme document in relation to the Scheme was posted to LTG Shareholders on 20 December 2024 (the "Scheme Document"). On 15 January 2025, LTG announced that it had reached a view that it was in the best interests of LTG and LTG Shareholders taken as a whole to adjourn the Court Meeting and the General Meeting in connection with the Scheme to provide further time for discussions with LTG Shareholders and to allow LTG Shareholders additional time to consider the Acquisition (the "Adjournment Announcement"). The Adjourned Court Meeting and the Adjourned General Meetings were each adjourned on 16 January 2025 and are now to be held on 6 February 2025. A supplementary circular in relation to the Adjourned Court Meeting and the Adjourned General Meeting was posted to LTG Shareholders on 27 January 2025 (the "Adjournment Circular").
On 24 January 2025, LTG announced a full year trading update and an update on Affirmative Action and DEI in USA (the "Full Year Trading Update").
Offer Update & No Increase Statement
Bidco confirms that since the Original Announcement, LTG and Bidco have engaged with LTG Shareholders in relation to the terms of the Acquisition.
Bidco notes that in the Full Year Trading Update, LTG confirmed that it expected President Trump's rescission of Executive Order 11246 to have a highly material impact on Revenue and Adjusted EBIT at Affirmity for 2025 and beyond.
Bidco notes the materiality of Affirmity within LTG, with Affirmity having generated c.$21m of revenue and c.$10m of Adjusted EBIT in 2024.
Bidco also notes that, historically, Affirmity has been accretive to LTG's overall growth and margin. In particular, LTG announced growth in Affirmity in FY23 of approximately 9% and reiterated healthy growth for Affirmity in H1 2024 (against the wider LTG group's revenue decline), and Bidco further notes that Affirmity's EBIT margin is nearly three times the consolidated EBIT margin for the LTG group as a whole, based on the Full Year Trading Update.
Bidco urges LTG Shareholders to consider the potential ongoing impact of the rescission of Executive Order 11246 on LTG's financial profile and the speed at which LTG can return to growth.
Bidco notes that, in the Full Year Trading Update, LTG also announced that FY24 revenues declined by c.5% on an organic constant currency basis as ongoing macroeconomic, political and AI uncertainty continued to affect customer budgets for LTG's technologies and services.
Bidco considers the financial terms of the Acquisition (as set out in the Scheme Document) to reflect full and fair value for LTG, in particular in light of the updates provided in the Full Year Trading Update.
Accordingly, the board of Bidco today confirms that the Cash Offer (of 100 pence per LTG Share) and each of the Alternative Offers is final and will not be increased, except that Bidco reserves the right to vary the financial terms of the Acquisition (including the ratio of either Alternative Offer and/or otherwise increase the offer price and/or otherwise improve the terms of the Cash Offer or either Alternative Offer): (i) if there is an announcement on or after the date of this announcement of a possible offer or a firm intention to make an offer for LTG by any third party; or (ii) if the Panel otherwise provides its consent (which would only occur in wholly exceptional circumstances).
In accordance with Rule 35.1 of the Code, if the Acquisition lapses, except with the consent of the Takeover Panel, Bidco will not be able to make an offer for LTG for at least twelve months.
Dividends
In accordance with Note 5 on Rule 32.2 of the Code, if, on or after the date of the Original Announcement, any dividend, distribution and/or other return of capital or value is authorised, declared, made, paid or becomes payable in respect of the LTG Shares, Bidco will reduce the consideration payable under the terms of the Cash Offer (and, as the case may be, the number of Rollover Securities due under the terms of the Alternative Offers, assuming that the value of the Rollover Securities to be issued under the Alternative Offers for each LTG Share is equal to the consideration payable under the Cash Offer) by an amount up to the amount of such dividend, distribution and/or other return of capital or value. In these circumstances, the relevant eligible LTG Shareholders will be entitled to receive and retain such dividend, distribution and/or return of capital or value that is authorised, declared, made, paid or becomes payable, and any reference in this announcement to the consideration payable under the Cash Offer (or consideration due under the Alternative Offers) will be deemed to be a reference to the consideration as so reduced. If the consideration payable under the terms of the Cash Offer (or consideration due under the Alternative Offers) is reduced in accordance with this paragraph, it will be the subject of an announcement and, for the avoidance of doubt, will not be regarded as constituting any revision or variation of the terms of the Cash Offer (or the Alternative Offers).
Adjourned Court Meeting and Adjourned General Meeting
LTG Shareholders are reminded that, pursuant to the Adjournment Announcement, the Adjourned Court Meeting and the Adjourned General Meeting (each as defined in the Adjournment Announcement), notices of which are set out in Part 12 and Part 13 of the Scheme Document, respectively, will be held on 6 February 2025 at 10.00 a.m. and 10.15 a.m. (or, if later, as soon as the Court Meeting has concluded or has been further adjourned), respectively, at the offices of Deutsche Numis at 45 Gresham Street, London, EC2V 7BF.
Action to be taken by LTG Shareholders
As noted above, the Adjourned Court Meeting and the Adjourned General Meeting have both been adjourned to be held on 6 February 2025.
Forms of Proxy in respect of the Adjourned Court Meeting and the Adjourned General Meeting should be returned so as to be received as soon as possible and in any event not later than:
· 10.00 a.m. on 4 February 2025 in respect of the Adjourned Court Meeting; and
· 10.15 a.m. on 4 February 2025 in respect of the Adjourned General Meeting,
or, if in either case the meeting is further adjourned or rescheduled (if postponed), the relevant Form of Proxy should be received no later than 48 hours (excluding any part of such 48-hour period falling on a non-working day) before the time fixed for the adjourned or rescheduled meeting (if postponed).
Existing Forms of Proxy in respect of the previously scheduled Court Meeting and the General Meeting remain valid for the Adjourned Court meeting and the Adjourned General Meeting, save that the times and dates set out therein are as set out in the Adjournment Announcement.
If the BLUE Form of Proxy in respect of the Adjourned Court Meeting is not received by the relevant time specified above, it may also be handed to the Chair at the Adjourned Court Meeting, at any time prior to the commencement of the Adjourned Court Meeting (or any adjournment or postponement thereof).
LTG Shareholders are also reminded that completion and return of a Form of Proxy, or the appointment of a proxy electronically (using any procedure described in the Scheme Document), will not prevent them from voting at the Adjourned Court Meeting or the Adjourned General Meeting in person. Please refer to the Scheme Document for further information.
LTG Shareholders who do NOT wish to change their voting instructions or Form of Election
LTG Shareholders who have already submitted Forms of Proxy for the Court Meeting and/or the General Meeting and do not wish to change their voting instructions, do not need to take any further action as their Forms of Proxy will continue to be valid in respect of the Adjourned Court Meeting and the Adjourned General Meeting.
LTG Shareholders who have already submitted a valid Form of Election in respect of an Alternative Offer and who do not wish to change their election need take no further action as a valid Form of Election will continue to be valid in respect of the Alternative Offers.
LTG Shareholders who DO wish to change their voting/proxy appointment instructions or Form of Election
LTG Shareholders who have already submitted Forms of Proxy for the Court Meeting and/or General Meeting or a valid Form of Election in respect of an Alternative Offer and who now wish to change their voting/proxy appointment instructions or election should contact Computershare by using the Shareholder Helpline on 0370 707 4082 from within the United Kingdom or on +44 (0)370 707 4082 if calling from outside the United Kingdom. Calls from outside of the United Kingdom will be charged at the applicable international rate. Lines will be open between 8.30 a.m. and 5.30 p.m., Monday to Friday, excluding public holidays in England and Wales. Different charges may apply to calls from mobile telephones and calls may be recorded and randomly monitored for security and training purposes. Please note that Computershare cannot provide advice on the merits of the Acquisition or the Scheme or give any financial, legal, investment or tax advice.
Changes to voting/proxy instructions must be received by Computershare no later than the deadlines referred to above. In relation to the deadline for return by LTG Shareholders of elections (or a change by LTG Shareholders in elections) for one (but not both) Alternative Offers, the Election Return Time to submit elections (as set out in the Scheme Document and in the Updated Timetable set out at Appendix 1 to this announcement) remains unchanged and LTG will announce the Election Return Time via a Regulatory Information Service of the London Stock Exchange.
To obtain further details of the required KYC Information required in respect of the Alternative Offers, please contact the Corporate Services Provider as soon as possible on +44 (0) 77007 22370 or at jess.vieira@cscglobal.com.
Further information in relation to the Form of Election and the KYC Information is contained in Part 2 and Part 7 of the Scheme Document.
Expected timetable of principal events
The Adjournment Announcement made by LTG on 16 January 2025 contains a revised expected timetable of principal events relating to the Scheme, which is set out at Appendix 2 to this announcement for reference (the "Updated Timetable"). Accordingly, times and dates set out in the Expected Timetable of Principal Events in the Scheme Document and Forms of Proxy should be read as amended by the Updated Timetable. If any of the key dates and/or times set out in the Updated Timetable change, notice of this change will be given by issuing an announcement through a Regulatory Information Service of the London Stock Exchange.
General
The confirmation that the Cash Offer (and each Alternative Offer) is final does not change Bidco's intentions as regards the business of LTG, the management and employees of LTG, LTG's pension schemes or the proposals in respect of the LTG Share Plans.
As set out in the Scheme Document, Bidco has reserved the right to elect to implement the Acquisition by way of a Takeover Offer as an alternative to the Scheme (subject to the consent of the Panel and the terms of the Co-operation Agreement).
Capitalised terms used in this announcement shall, unless otherwise defined, have the same meanings as set out in the Scheme Document. This announcement should be read in conjunction with the Original Announcement and the Scheme Document.
Enquiries:
General Atlantic (Media) | +(1) 212 715 4000 |
Emily Japlon | |
Sara Widmann | |
| |
PJT Partners (UK) Limited (Lead Financial Adviser to Bidco) Kush Nanjee | +44 (0)20 3650 1100 |
Hugo Baring |
|
Henry Lebus |
|
Michael Gilbert | +(1) 212 364 7800 |
Jitesh Jeswani |
|
|
|
HSBC Bank plc (Joint Financial Adviser to Bidco) | +44 (0)20 7991 8888 |
Anthony Parsons | |
Christopher Fincken | |
Gregory Scott | |
Bhavin Dixit | |
Alex Thomas | |
| |
Paul, Weiss, Rifkind, Wharton & Garrison LLP is retained as legal adviser to Bidco and General Atlantic.
Important Notices
HSBC Bank plc ("HSBC"), which is authorised by the PRA and regulated in the UK by the FCA and the PRA, is acting exclusively as financial adviser to Bidco and no one else in connection with the Acquisition and will not be responsible to anyone other than Bidco for providing the protections afforded to clients of HSBC nor for providing advice in connection with the Acquisition or any matter referred to herein. Neither HSBC nor any of its subsidiaries, branches or affiliates, nor any of its or their respective partners, directors, employees, officers, agents or representatives owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of HSBC in connection with this announcement, the Acquisition, any statement contained herein or otherwise.
PJT Partners (UK) Limited ("PJT Partners"), which is authorised and regulated in the UK by the FCA, is acting exclusively as financial adviser to Bidco and no one else in connection with the Acquisition and will not be responsible to anyone other than Bidco for providing the protections afforded to clients of PJT Partners nor for providing advice in connection with the Acquisition or any matter referred to herein. Neither PJT Partners nor any of its subsidiaries, branches or affiliates, nor any of its or their respective partners, directors, employees, officers, agents or representatives owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of PJT Partners in connection with this announcement, the Acquisition, any statement contained herein or otherwise.
This announcement is for information purposes only. It does not constitute, and is not intended to constitute, or form part of, any offer, invitation or solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the Acquisition or otherwise, nor will there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. The Acquisition will be made solely pursuant to the terms of the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document), which contains the full terms and conditions of the Acquisition, including details of how to vote in respect of the Acquisition. Any vote in respect of the Scheme, or other response in relation to the Acquisition should be made only on the basis of the information in the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document).
The statements contained in this announcement are made as at the date of this announcement, unless some other time is specified in relation to them, and service of this announcement shall not give rise to any implication that there has been no change in the facts set forth in this announcement since such date.
The statements contained in this announcement are not to be construed as legal, business, financial or tax advice.
This announcement does not constitute a prospectus or prospectus exemption document.
This announcement has been prepared for the purpose of complying with the laws of England and Wales and the Code and the information disclosed may not be the same as that which would have been disclosed if this announcement had been prepared in accordance with the laws of jurisdictions outside England and Wales.
Overseas Shareholders
The release, publication or distribution of this announcement in or into certain jurisdictions other than the United Kingdom may be restricted by law. Persons who are not resident in the United Kingdom or who are subject to other jurisdictions should inform themselves of, and observe, any applicable requirements.
Unless otherwise determined by Bidco or required by the Code, and permitted by applicable law and regulation, the Acquisition will not be made available, directly or indirectly, in, into or from a Restricted Jurisdiction where to do so would violate the laws in that jurisdiction and no person may vote in favour of the Acquisition by any such use, means, instrumentality or from within a Restricted Jurisdiction or any other jurisdiction if to do so would constitute a violation of the laws of that jurisdiction. Accordingly, copies of this announcement and all documents relating to the Acquisition are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in, into or from a Restricted Jurisdiction where to do so would violate the laws in that jurisdiction, and persons receiving this announcement and all documents relating to the Acquisition (including custodians, nominees and trustees) must not mail or otherwise distribute or send them in, into or from such jurisdictions where to do so would violate the laws in that jurisdiction.
The availability of the Acquisition, including the Alternative Offers, to LTG Shareholders who are not resident in the United Kingdom may be affected by the laws of the relevant jurisdictions in which they are resident. Persons who are not resident in the United Kingdom should inform themselves of, and observe, any applicable legal and regulatory requirements.
The Loan Notes and Rollover Securities are not being offered, sold, resold, taken up, transferred or delivered, directly or indirectly, in, into or from any Restricted Jurisdiction or to, or for the account or benefit of, any Overseas Shareholders who are resident in, or are nationals or citizens of, any Restricted Jurisdiction (or who are nominees, custodians, trustees or guardians for, citizens, residents or nationals of such Restricted Jurisdictions), except pursuant to an applicable exemption from, or in a transaction not subject to, applicable securities laws of those jurisdictions and/or where all regulatory approvals (where applicable) have been validly obtained. Any individual acceptances of an Alternative Offer will only be valid if all regulatory approvals by an LTG Shareholder to acquire the relevant Loan Notes and Rollover Securities have been obtained and satisfactory KYC Information has been delivered to the Corporate Services Provider by no later than the Election Return Time.
LTG Shareholders should be aware that the transaction contemplated herein may have tax consequences and that such consequences, if any, are not described herein. LTG Shareholders are urged to consult with appropriate legal, tax and financial advisers in connection with the consequences of the Acquisition (including any election for an Alternative Offer) on them. It is intended that the Bidco Loan Notes, Midco 3 Loan Notes, Midco 2 Loan Notes and Midco 1 Loan Notes constitute non-qualifying corporate bonds for holders of such securities who are UK tax resident individuals.
The Acquisition will be subject to the laws of England and Wales, the jurisdiction of the Court, and the applicable requirements of the Code, the Panel, the AIM Rules, the London Stock Exchange and the FCA. Further details in relation to Overseas Shareholders are contained in the Scheme Document.
Additional information for U.S. investors
The Acquisition relates to the shares of a company incorporated in England and Wales and is proposed to be implemented by means of a scheme of arrangement under the laws of England and Wales. A transaction implemented by means of a scheme of arrangement is not subject to the tender offer rules or the proxy solicitation rules under the U.S. Exchange Act.
Accordingly, the Acquisition is subject to the disclosure and procedural requirements applicable in the United Kingdom to schemes of arrangement which differ from the disclosure requirements of United States tender offer proxy solicitation rules.
The Acquisition may, in the circumstances provided for in the Scheme Document, instead be carried out by way of an Offer under the laws of England and Wales. If Bidco exercises its right to elect (subject to the consent of the Panel, where necessary, and the terms of the Co-operation Agreement) to implement the Acquisition by way of an Offer, such Offer will be made in compliance with all applicable United States laws and regulations, including any applicable exemptions under the U.S. Exchange Act and the U.S. Securities Act.
In the event that the Acquisition is implemented by way of an Offer, in accordance with normal UK practice and pursuant to Rule 14e-5(b) of the U.S. Exchange Act, Bidco, General Atlantic, certain of their affiliated companies or nominees, or their brokers (acting as agents), may from time to time make certain purchases of, or arrangements to purchase, LTG Shares outside of the United States, other than pursuant to the Acquisition, until the date on which the Acquisition becomes Effective, lapses or is otherwise withdrawn. These purchases may occur either in the open market at prevailing prices or in private transactions at negotiated prices. Any information about such purchases will be disclosed as required in the United Kingdom, will be reported to a Regulatory Information Service and will be available on the London Stock Exchange website, www.londonstockexchange.com.
The receipt of consideration by a U.S. LTG Shareholder for the transfer of its LTG Shares pursuant to Scheme may have tax consequences in the United States. Each LTG Shareholder is urged to consult their independent professional adviser immediately regarding the tax consequences of the Acquisition applicable to them, including under applicable United States state, federal and local, as well as overseas and other tax laws.
Financial information relating to LTG included in this announcement and the Scheme Document has been prepared in accordance with accounting standards applicable in the United Kingdom and may not be comparable to financial information of U.S. companies or companies whose financial statements are prepared in accordance with generally accepted accounting principles in the United States.
Bidco and LTG are organised under the laws of England and Wales. Some or all of the officers and directors of Bidco and LTG, respectively, are residents of countries other than the United States. In addition, most of the assets of LTG are located outside the United States. As a result, it may be difficult for U.S. LTG Shareholders to effect service of process within the United States upon Bidco or LTG or their respective officers or directors or to enforce against them a judgment of a U.S. court predicated upon the federal or state securities laws of the United States.
The Loan Notes and Rollover Securities have not been, and will not be, registered under the U.S. Securities Act, or applicable state securities laws. Accordingly, the Loan Notes and Rollover Securities may not be offered, sold, resold, taken up, transferred or delivered, directly or indirectly, in the United States absent registration or an available exemption or a transaction not subject to the registration requirements of the U.S. Securities Act. Accordingly, the Loan Notes and Rollover Securities will not be issued to LTG Shareholders unless Bidco determines that they may be issued pursuant to an exemption from, or in a transaction that is not subject to, the registration requirements of the U.S. Securities Act as provided by Section 3(a)(10) of the U.S. Securities Act or another available exemption.
The Loan Notes and Rollover Securities are expected to be issued in reliance on the exemption from the registration requirements of the U.S. Securities Act set forth in Section 3(a)(10) thereof on the basis of the approval of the Court, and similar exemptions from registration under applicable state securities laws. Section 3(a)(10) of the U.S. Securities Act exempts the issuance of any securities issued in exchange for one or more bona fide outstanding securities from the general requirement of registration under the U.S. Securities Act, where the terms and conditions of the issuance and exchange of such securities have been approved by a court of competent jurisdiction that is expressly authorised by law to grant such approval, after a hearing upon the substantive and procedural fairness of the terms and conditions of such issuance and exchange at which all persons to whom it is proposed to issue the securities have the right to appear and receive timely and adequate notice thereof. The Court is authorised to conduct a hearing at which the substantive and procedural fairness of the terms and conditions of the Scheme will be considered. For the purposes of qualifying for the exemption provided by Section 3(a)(10) of the U.S. Securities Act, LTG will advise the Court before the hearing that the Court's approval of the Scheme will constitute the basis for an exemption from the registration requirements of the U.S. Securities Act, pursuant to Section 3(a)(10).
THE SCHEME, THE LOAN NOTES AND THE ROLLOVER SECURITIES TO BE ISSUED IN CONNECTION THEREWITH HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC OR ANY OTHER SECURITIES REGULATORY AUTHORITY OF ANY STATE OF THE UNITED STATES, NOR HAS THE SEC OR ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OF THE UNITED STATES PASSED UPON THE FAIRNESS OR THE MERITS OF THIS TRANSACTION OR UPON THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED IN THIS ANNOUNCEMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENCE.
Forward-looking statements
This announcement (including information incorporated by reference in this announcement), oral statements made regarding the Acquisition, and other information published by LTG, Bidco, any member of the Wider Learning Technologies Group, any member of the Wider Bidco Group or General Atlantic, contain statements which are, or may be deemed to be, "forward-looking statements". Such forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and on numerous assumptions regarding the business strategies and the environment in which Bidco and LTG shall operate in the future and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by those statements.
The forward-looking statements contained in this announcement relate to Bidco and LTG's future prospects, developments and business strategies, the expected timing and scope of the Acquisition and other statements other than historical facts. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "will look to", "would look to", "plans", "prepares", "anticipates", "expects", "is expected to", "is subject to", "budget", "scheduled", "forecasts", "synergy", "strategy", "goal", "cost-saving", "projects", "intends", "may", "will", "shall" or "should" or their negatives or other variations or comparable terminology. Forward-looking statements may include statements relating to the following: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; (ii) business and management strategies and the expansion and growth of Bidco's, LTG's, any member of the Bidco Group's or any member of the Group's operations and potential synergies resulting from the Acquisition; and (iii) the effects of global economic conditions and governmental regulation on Bidco's, LTG's, any member of the Bidco Group's or any member of the Group's business.
Although Bidco and LTG believe that the expectations reflected in such forward-looking statements are reasonable, neither Bidco nor LTG (nor any of their respective associates, directors, officers or advisers) can give any assurance that such expectations will prove to be correct. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements.
These factors include, but are not limited to: (i) the ability to complete the Acquisition; (ii) the ability to obtain requisite regulatory and shareholder approvals and the satisfaction of other Conditions on the proposed terms and schedule; (iii) changes in the global, political, economic, business and competitive environments and in market and regulatory forces; (iv) changes in future exchange and interest rates; (v) changes in tax rates; (vi) future business combinations or disposals; (vii) changes in general economic and business conditions; (viii) changes in the behaviour of other market participants; (ix) changes in the anticipated benefits from the proposed transaction not being realised as a result of changes in general economic and market conditions in the countries in which Bidco and LTG operate; (x) weak, volatile or illiquid capital and/or credit markets; (xi) changes in the degree of competition in the geographic and business areas in which Bidco and LTG operate; (xii) changes in laws or in supervisory expectations or requirements; and (xiii) any epidemic or pandemic or disease outbreak or global health crisis. Other unknown or unpredictable factors could cause actual results to differ materially from those expected, estimated or projected in the forward-looking statements. If any one or more of these risks or uncertainties materialises or if any one or more of the assumptions proves incorrect, actual results may differ materially from those expected, estimated or projected. Such forward-looking statements should therefore be construed in the light of such factors.
Neither LTG nor Bidco, nor any of their respective associates, directors, officers or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this announcement will actually occur. Given these risks and uncertainties, potential investors should not place any reliance on forward-looking statements.
Specifically, statements of estimated cost savings and synergies relate to future actions and circumstances which, by their nature involve risks, uncertainties and contingencies. As a result, the cost savings and synergies referred to may not be achieved, may be achieved later or sooner than estimated, or those achieved could be materially different from those estimated. Due to the scale of the Group, there may be additional changes to the Group's operations. As a result, and given the fact that the changes relate to the future, the resulting cost synergies may be materially greater or less than those estimated.
The forward-looking statements speak only at the date of this announcement. All subsequent oral or written forward-looking statements attributable to Bidco, LTG, any member of the Bidco Group or the Group, or any of their respective associates, directors, officers, employees or advisers, are expressly qualified in their entirety by the cautionary statement above.
LTG and Bidco (and their respective associates, directors, officers or advisers) expressly disclaim any intention or obligation to update or revise any forward-looking statements, other than as required by law or by the rules of any competent regulatory authority, whether as a result of new information, future events or otherwise.
No profit forecasts, estimates or quantified financial benefit statements
No statement in this announcement is intended as a profit forecast, profit estimate or quantified financial benefits statement for any period and no statement in this announcement should be interpreted to mean that earnings or earnings per share for Bidco or LTG, as appropriate, for the current or future financial years would necessarily match or exceed the historical published earnings or earnings per share for Bidco or LTG, as appropriate.
Disclosure requirements of the Code
Under Rule 8.3(a) of the Code, any person who is interested in 1 per cent. or more of any class of relevant securities of a target company or of any securities exchange bidder (being any bidder other than a bidder in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange bidder is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of: (i) the target company; and (ii) any securities exchange bidder(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 p.m. (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 p.m. (London time) on the 10th business day following the announcement in which any securities exchange bidder is first identified. Relevant persons who deal in the relevant securities of the target company or of a securities exchange bidder prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.
Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1 per cent. or more of any class of relevant securities of the target company or of any securities exchange bidder must make a Dealing Disclosure if the person deals in any relevant securities of the target company or of any securities exchange bidder. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of: (i) the target company; and (ii) any securities exchange bidder(s), save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 p.m. (London time) on the business day following the date of the relevant dealing.
If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of a target company or a securities exchange bidder, they shall be deemed to be a single person for the purpose of Rule 8.3.
Opening Position Disclosures must also be made by the target company and by any bidder and Dealing Disclosures must also be made by the target company, by any bidder and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).
Details of the target and bidder companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Panel's website at http://www.thetakeoverpanel.org.uk/, including details of the number of relevant securities in issue, when the offer period commenced and when any bidder was first identified. You should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129 if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.
Publication on website and availability of hard copies
In accordance with Rule 26.1 of the Code, a copy of this announcement will be made available (subject to certain restrictions relating to persons resident in Restricted Jurisdictions) on Bidco's website at https://announcements-ga.com/ by no later than 12 noon (London time) on 29 January 2025. For the avoidance of doubt, the contents of these websites or any other website accessible from hyperlinks are not incorporated into and do not form part of this announcement.
In accordance with Rule 30.3 of the Code, LTG Shareholders, persons with information rights in LTG and participants in LTG Share Plans may request a hard copy of this announcement (and any information incorporated in this announcement by reference to another source), free of charge, by (i) telephoning Computershare on +44 (0)370 707 4082. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines will be open between 8.30 a.m. and 5.30 p.m., Monday to Friday, excluding public holidays in England and Wales; or (ii) submitting a request in writing to Computershare Investor Services PLC at The Pavilions, Bridgwater Road, Bristol, BS13 8AE. For persons who receive a copy of this announcement in electronic form or via a website notification, a hard copy of this announcement and any such information incorporated in it by reference to another source will not be sent unless so requested. In accordance with Rule 30.3 of the Code, a person so entitled may also request that all future documents, announcements and information to be sent to them in relation to the Acquisition should be in hard copy form.
Electronic communications
Please be aware that addresses, electronic addresses and certain other information provided by LTG Shareholders, persons with information rights and other relevant persons for the receipt of communications from LTG may be provided to Bidco during the Offer Period as required under Section 4 of Appendix 4 of the Code to comply with Rule 2.11(c) of the Code.
General
Bidco reserves the right to elect (subject to the consent of the Panel, where necessary, and the terms of the Co-operation Agreement) to implement the Acquisition by way of an Offer as an alternative to the Scheme. In such event, the Offer will be implemented on substantially the same terms and conditions, so far as is applicable, as those which would apply to the Scheme (subject to appropriate amendments to reflect the change in method of implementation and the terms of the Co-operation Agreement).
Investors should be aware that Bidco may purchase LTG Shares otherwise than under any Offer, including pursuant to privately negotiated purchases.
If you are in any doubt about the contents of this announcement or the action you should take, you are recommended to seek your own independent financial advice immediately from your stockbroker, bank manager, solicitor or independent financial adviser duly authorised under FSMA if you are resident in the United Kingdom or, if not, from another appropriate authorised independent financial adviser.
Inside information
The information in this announcement is deemed by LTG to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 (as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018). On the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
APPENDIX
REVISED EXPECTED TIMETABLE OF PRINCIPAL EVENTS
The following revised indicative timetable is based on LTG's and Bidco's current expected dates for the implementation of the Scheme and is subject to change. Accordingly, times and dates set out in the Expected Timetable of Principal Events in the Scheme Document and Forms of Proxy should be read as amended by this revised indicative timetable. If any of the dates and/or times in this revised expected timetable changes, the revised dates and/or times will be notified to LTG Shareholders by announcement through the Regulatory Information Service of the London Stock Exchange, with such announcement being made available on LTG's website at https://ltgplc.com/offer-microsite/. Unless otherwise stated, all times referred to in the revised timetable set out below are London times.
Event | Time and/or date(1) |
Publication of the Scheme Document | 20 December 2024 |
Publication of the Adjournment Circular | 27 January 2025 |
Latest time for lodging Forms of Proxy for the: | |
Adjourned Court Meeting (BLUE Form of Proxy) | 10.00 a.m. on 4 February 2025(2) |
Adjourned General Meeting (YELLOW Form of Proxy) | 10.15 a.m. on 4 February 2025(3) |
Voting Record Time | 6.00 p.m. on 4 February 2025(4) |
Court Meeting | 10.00 a.m. on 6 February 2025 |
General Meeting | 10.15 a.m. on 6 February 2025(5) |
The following times and dates associated with the Scheme are indicative only and will depend, among other things, on the date on which: (i) the Conditions are either satisfied or (if capable of waiver) waived in respect of the Scheme; (ii) the Court sanctions the Scheme; and (iii) the Court Order(s) sanctioning the Scheme are delivered to the Registrar of Companies. LTG will give adequate notice of the Election Return Time and any change(s) by issuing an announcement through a Regulatory Information Service (with such announcement being made available on LTG's website at http://www.ltgplc.com/microsite/) and, if required by the Panel, send notice of the change(s) to LTG Shareholders and, for information rights, other persons with information rights and participants in the LTG Share Plans. Further updates and changes to these times will be notified in the same way. Please see also note (1) below.
Election Return Time, being the latest time for lodging the GREEN Form of Election (for certificated holders) or settlement of TTE Instructions (for CREST holders) | 1.00 p.m. on D-5 Business Days(6) |
Sanction Hearing to seek sanction of the Scheme | a date expected to be during the first quarter of 2025 subject to the satisfaction (or, if applicable, waiver) of the Conditions (other than Condition 2(c) of Part 33 (Conditions and Further Terms of the Acquisition and the Scheme) of this document), (and, in any event, prior to the Long-Stop Date (D)) (7) |
Last day for dealings in, and for the registration of transfers of, and disablement in CREST of, LTG Shares | D+1 Business Day |
Scheme Record Time | 6.00 p.m. on D+1 Business Day |
Disablement in CREST in respect of LTG Shares | 6.00 p.m. on D+1 Business Day |
Suspension of dealings in LTG Shares | by 7.30 a.m. on D+2 Business Days |
Effective Date of Scheme(8) | D+2 Business Days |
Cancellation of admission to trading of LTG Shares | 8.00 a.m. on D+3 Business Days |
Latest date for despatch of cheques and crediting of CREST accounts and processing electronic transfers for cash consideration due under the Scheme and share certificates in respect of Rollover Securities | Within 14 days of the Effective Date |
Long-Stop Date | 11.59 p.m. on 30 June 2025(9) |
(1) The dates and times given are indicative only, are based on current expectations, are subject to change (including as a result of changes to the regulatory timetable) and will depend, among other things, on the date on which: (i) the Conditions are either satisfied, or (if capable of waiver) waived; (ii) the Court sanctions the Scheme; and (iii) the Court Order sanctioning the Scheme is delivered to the Registrar of Companies. References to times are to London, United Kingdom time unless otherwise stated. If any of the times and/or dates above change, the revised times and/or dates will be notified to LTG Shareholders by announcement through a Regulatory Information Service and, if required by the Panel, notice of the change(s) will be sent to LTG Shareholders and other persons with information rights. .
(2) The BLUE Form of Proxy for the Adjourned Court Meeting should be received by Computershare before 10.00 a.m. on 4 February 2025, or, if the Adjourned Court Meeting is further adjourned, not later than 48 hours before the time fixed for the holding of the adjourned meeting, excluding any part of such 48-hour period falling on a day that is not a working day. BLUE Forms of Proxy not so received may be handed to the Chair of the Adjourned Court Meeting or the Computershare representative who will be present at the Court Meeting before the commencement of the Adjourned Court Meeting (or any adjournment thereof).
(3) The YELLOW Form of Proxy for the Adjourned General Meeting must be lodged with Computershare before 10.15 a.m. on 4 February 2025 in order for it to be valid, or, if the Adjourned General Meeting is further adjourned, not later than 48 hours before the time fixed for the holding of the adjourned meeting, excluding any part of such 48-hour period falling on a day that is not a working day. The YELLOW Form of Proxy cannot be handed to the Chair of the Adjourned General Meeting or the Computershare representative at the Adjourned General Meeting and will be invalid if submitted after this deadline.
(4) If a meeting is further adjourned, the Voting Record Time for the relevant adjourned Meeting will be 6.00 p.m. on the day which is two Business Days before the adjourned Meeting.
(5) To commence at the time fixed or, if later, immediately after the conclusion or adjournment of the Court Meeting.
(6) The Election Return Time will be 1.00 p.m. (London time) on the fifth Business Day prior to the date of the Sanction Hearing (which remains to be set but is currently expected to take place in the first quarter of 2025). Once the date of the Sanction Hearing is set, LTG will announce the Election Return Time via a Regulated Information Service (with such announcement being made available on LTG's website at www.ltgplc.com/microsite/) and an appropriate event will be set up by Euroclear in CREST. It will be possible for TTE Instructions to be sent to Euroclear from such time until the Election Return Time. Eligible LTG Shareholders who hold their LTG Scheme Shares in uncertificated form should follow the instructions in Part 7 (How to Make an Election for an Alternative Offer) of this document if they wish to make an election under the Alternative Offers.
(7) Bidco and LTG may agree a later date, with the consent of the Panel and, if required, which the Court may allow.
(8) LTG expects that, subject to the satisfaction (or, where applicable, waiver) of the Conditions in Part 3 (Conditions and Further Terms of the Acquisition and the Scheme) of this document, the Scheme will become Effective during the first quarter of 2025.
(9) This is the last date on which the Scheme may become Effective unless Bidco and LTG, with the consent of the Panel and, if required, the approval of the Court, agree a later date.
*[1] The Cash Offer (of 100 pence per LTG Share) and each of the Alternative Offers is final and will not be increased, except that Bidco reserves the right to vary the financial terms of the Acquisition (including the ratio of either Alternative Offer and/or otherwise increase the offer price and/or otherwise improve the terms of the Cash Offer or either Alternative Offer): (i) if there is an announcement on or after the date of this announcement of a possible offer or a firm intention to make an offer for LTG by any third party; or (ii) if the Panel otherwise provides its consent (which would only occur in wholly exceptional circumstances).
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