Leeds Group PLC Dawson International PLC (2613I)
July 23 2012 - 6:44AM
UK Regulatory
TIDMLDSG TIDMDWSN
RNS Number : 2613I
Leeds Group PLC
23 July 2012
Leeds Group plc (the "Company" or "Leeds")
Statement re:- Dawson International PLC
The board of Leeds Group plc notes the announcements made by
Dawson International PLC ("Dawson") on 20 July 2012. Leeds owns
approximately 29 per cent. of the issued share capital of Dawson.
The audited report and accounts of Leeds (as at 31 May 2011)
recorded the cost and carrying value of its holding in Dawson at
GBP981,000.
Following the announcement that the Dawson board has failed to
reach agreement with the Pension Protection Fund ("PPF") and the
Pensions Regulator ("tPR") to seek a negotiated entry of its UK
defined benefit pension plans, the value of Leed's investment in
Dawsons is uncertain. Dawson's board has stated that it will issue
an update as soon as it has further information. The Leeds board
will review any new information and update shareholders as
appropriate.
Following Dawson's announcement, Jan Holmstrom, who is a
director of Leeds, resigned from the board of Dawsons. Mr Holmstom
strongly disagreed with the decision of the PPF and tPR to reject
the Dawson board's proposals believing that these offered a
significantly better outcome for PPF than what eventually an
insolvency will give in a likely administration process.
Leeds Group has been working closely with Dawson in their
attempt to reach a compromise with PPF and tPR by offering to
guarantee a proposed fundraising amongst existing shareholders.
According to Leeds Group's understanding, the Trustees incurred
significant expense in relation to the process which, as it now
looks, has no benefit to Dawson or the plans beneficiaries. Leeds
Group has difficulty to agree to PPF reasoning that the plans
deficit were too large compared to what Dawson offered in the
compromise. Firstly it is not Dawson who has caused the deficit as
that is managed by Trustees supervised by tPR with really no
influence by the Company and secondly, we cannot see the rational
whereby PPF turn down an offer which will clearly give more than
insolvency value and in addition will not put a lot of jobs at
risk. The board of Leeds Group cannot see the rationale behind the
PFF reasoning as it is very likely that UK tax payers now have to
pick up a larger bill than otherwise would have been the case.
The board of Leeds Group is also concerned that other companies
in a similar situation will be treated in the same way and thereby
denying them to continue to develop their business for the
future.
A further update will be made in due course.
Leeds plans to issue its preliminary statement on or around 31
July 2012.
Enquiries
Leeds Group plc
Kathryn Davenport 0113 285 4324
Cairn Financial Advisers LLP
Tony Rawlinson / Avi Robinson 020 7148 7900
This information is provided by RNS
The company news service from the London Stock Exchange
END
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