Vote against offer for MWB Business Exchange (3153I)

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RNS Number : 3153I

Pyrrho Investment Limited

13 June 2011

Pyrrho Investment Limited to vote against MWB Group Holdings Plc's Offer for MWB Business Exchange.

Pyrrho Investment Ltd ("Pyrrho") is very disappointed that MWB Business Exchange ("Business Exchange") has ignored the concerns laid out in its open letter of June 7(th) . Business Exchange's announcement of June 9(th) failed to respond to any of the points in Pyrrho's letter or even refer to them.

Pyrrho notes that the recommended acquisition ("Offer") by MWB Group Holdings plc ("MWB") for the approximately 28% of the outstanding shares in Business Exchange cannot succeed without Pyrrho's support.

The Offer requires the approval of at least 75% of the holders of the outstanding shares and as a result of its approximately 8% holding in Business Exchange, Pyrrho controls more than 28% of such outstanding shares.

After due consideration, Pyrrho announces it intends to vote its entire holding of 5,179,594 ordinary shares against the resolution to approve the Offer from MWB, since it believes it grossly undervalues Business Exchange and represents an unacceptable transfer of economic value to MWB.

Given that the current Offer will now fail, Pyrrho remains concerned about the blatant threat from MWB to delist Business Exchange's shares. It calls on Business Exchange's Board, particularly Malcolm Murray, its independent non-executive director, to oppose any attempt by MWB to delist the business. The modest cost savings achieved through such a delisting would be far outweighed by the damage done to the interests of the minority shareholders through such a move and the Board has a duty to defend those interests.

Paul Cummins, Pyrrho's investment director, said: "MWB is holding a gun to the heads of Business Exchange's minority shareholders, and has presented us with a derisory offer, backed by the threat of a delisting if we don't comply. This is simply unacceptable behaviour so we have decided to block the Offer. We now call on the Board to protect the rights of all shareholders in Business Exchange and undertake to maximise value for them."

Contacts:

Singer Capital Markets (Adviser to Pyrrho Investment Ltd)

T: +44 (0) 20 3205 7500

Jonathan Marren

Nick Donovan

Maitland (PR Adviser to Pyrrho Investment Ltd)

T: +44 (0) 20 7379 5151

Neil Bennett

George Hudson

This information is provided by RNS

The company news service from the London Stock Exchange

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