Management Consulting Group PLC Update on the Kurt Salmon escrow funds (1350U)
July 10 2018 - 4:01AM
UK Regulatory
TIDMMMC
RNS Number : 1350U
Management Consulting Group PLC
10 July 2018
This announcement contains inside information for the purposes
of article 7 of Regulation 596/2014 (the "Market Abuse
Regulation").
10 July 2018
Management Consulting Group PLC
Update on the Kurt Salmon escrow funds
Management Consulting Group PLC (the "Group") provides the
following update on the Kurt Salmon escrow funds.
As announced on 29 June 2018, the Company received on 26 June
2018 a further letter of claim from Wavestone which set out a
number of disputes with a potential further estimated aggregate
liability of approximately EUR1.8 million (approximately GBP1.6
million) against the second tranche of EUR4 million held under
escrow which guarantee certain contingent liabilities relating to
the disposal of parts of the Kurt Salmon business to Wavestone in
2016 (the "KS Escrow Funds"). The Company continues to assess the
merits of these further claims.
Under the terms of the sale agreement, the second tranche of
EUR4 million of the KS Escrow Funds was due to be released on 7
July 2018. As a result, a balance of approximately EUR2.2 million
(approximately GBP1.95 million) has now been released to the
Company from the escrow arrangements. The Company and Wavestone
have agreed to extend the period of escrow for an amount equal to
the approximate EUR1.8 million (approximately GBP1.6 million)
claimed by Wavestone by a further month to 7 August 2018 so as to
allow negotiations over the treatment of the potential
indemnification claims raised in Wavestone's letter to be
finalised. The Board remains confident as to the Group's overall
position in terms of the claims raised to date by Wavestone, and so
expects to secure the release of the remaining outstanding KS
Escrow Funds progressively. As previously announced, the Board
believes a degree of uncertainty still exists as to the timing of
the remaining KS Escrow Funds being released to the Group in the
second half of 2018.
The Board will provide further updates on these matters as
appropriate and continues to recommend that shareholders vote in
favour of the resolutions relating to the Placing and Open Offer at
the general meeting to be held on 18 July 2018 as outlined in the
prospectus published on 29 June 2018.
Management Consulting Group PLC
Tel: +44 20 7710 5000
Nick Stagg, Chairman and Chief Executive
Market Abuse Regulation
The information contained within this announcement is deemed by
the Group to constitute inside information as stipulated under the
Market Abuse Regulation. Upon the publication of this announcement
via a regulatory information service, this inside information is
now considered to be in the public domain.
The person responsible for arranging for the release of this
announcement on behalf of the Group is Nick Stagg, Chairman and
Chief Executive.
Forward-looking statements
Certain information contained in this announcement constitutes
forward looking information. This information relates to future
events or occurrences or the Company's future performance. All
information other than information of historical fact is forward
looking information. The use of any of the words "anticipate",
"plan", "continue", "estimate", "expect", "may", "will", "project",
"should", "believe", "predict" and "potential" and similar
expressions are intended to identify forward looking information.
This information involves known and unknown risks, uncertainties
and other factors that may cause actual results or events to differ
materially from those anticipated in such forward looking
information. No assurance can be given that this information will
prove to be correct and such forward looking information included
in this announcement should not be relied upon. Forward-looking
information speaks only as of the date of this announcement.
The forward looking information included in this announcement is
expressly qualified by this cautionary statement and is made as of
the date of this announcement. The Group does not undertake any
obligation to publicly update or revise any forward looking
information except as required by applicable securities laws.
END
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END
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