RNS Number:7272N
London Forfaiting Company PLC
18 July 2003

18 July 2003



                 London Forfaiting Company plc (the "Company")



                          Update on Offer discussions





On 14 July 2003 it was announced that the Company was in exclusive negotiations
with a counterparty. The counterparty which is a regulated and listed entity in
its own jurisdiction has made further substantial progress this week in its bid
preparations. The counterparty's due diligence is now complete.



The counterparty concerned has requested that the exclusivity agreement be
extended until 5.00pm on Wednesday 23rd July 2003. The Board of the Company has
agreed to this further extension on the basis that the counterparty continues to
be interested in making an offer at 29.5 pence per share in cash and that the
counterparty expects to announce firm proposals by the date to which exclusivity
has been extended.



The exclusivity agreement was entered into on the basis of an indicative offer
price of 29.5 pence per share in cash. Such an offer, if made, would value the
Company at approximately #31 million. The proposed offer is subject to a number
of pre-conditions including the recommendation of the Board of the Company and
support from certain of the Company's larger shareholders.



It is emphasised that no formal offer has at this stage been made and there can
be no certainty that such a firm offer will be made, even in the event that the
preconditions are satisfied or waived.



Any offer by the counterparty, if made, will be in cash at not less than 29.5
pence per share, save in the event of an announcement of a firm intention to
make an offer by a third party or unless otherwise agreed by the directors of
the Company.



The counterparty, which is a bank, has requested not to be named in this
announcement. The counterparty's financial adviser, WestLB, has reviewed this
announcement. Upon release of this announcement WestLB will be contacting
certain of the Company's shareholders seeking irrevocable undertakings to
support the proposed offer.



A further announcement will be made as soon as practicable.



Shareholders who are in any doubt about the action they should take should
consult immediately their stockbroker, bank manager, solicitor, accountant or
other independent financial adviser authorised under the Financial Services and
Markets Act 2000.





Contacts:


London Forfaiting                             020 7481 3410
Jack Wilson/Stathis Papoutes


Kinmont                                       020 7493 8488
Gavin Kelly/Fraser Shand


Hogarth Partnership                           020 7357 9477
Nick Denton/Andrew Jaques


WestLB                                       020 7020 5210
Frank Malone





In relation to matters set out herein and all matters related thereto, Kinmont
Limited ("Kinmont") and Intelli Corporate Finance Limited ("ICF"), who are
authorised and regulated in the United Kingdom by the Financial Services
Authority are acting as financial advisers to the Company and will not regard
any person other than the Company as their customer or be responsible to anyone
other than the Company for providing the protections afforded to customers of
Kinmont and/or ICF, or advice in relation to matters set out herein or the
preparation and distribution of this document and all matters related thereto.



In relation to matters set out herein and all matters related thereto, WestLB,
which is authorised and regulated in the United Kingdom by the Financial
Services Authority is acting as financial adviser to the Counterparty and will
not regard any person other than the Counterparty as their customer or be
responsible to anyone other than the Counterparty for providing the protections
afforded to customers of WestLB or advice in relation to matters set out herein
or the preparation and distribution of this document and all matters related
thereto.





Ends.






                      This information is provided by RNS
            The company news service from the London Stock Exchange
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