Guinness Peat to change name to Coats

- A thorough review of the appropriate capital structure for New Coats as the standalone

listed entity

Guinness Peat Group plc (GPG) announces update on value realisation programme and proposed structure#

- Identifying surplus capital emanating from GPG’s non-Coats investment portfolio

realisation process which will be returned to shareholders in the most efficient and

timely manner

- Expected retention within New Coats of certain GPG residual obligations, principally the

GPG pension schemes

- Implementation of appropriate corporate governance structures, alongside the

reconstitution of the Board to support Coats’ executive directors in the context of the

ongoing New Coats listed entity

- Capital market positioning of Coats and development of its investor base, with a key

objective of improving liquidity and the profile of New Coats

 

The transition from GPG to Coats has already begun and will be reflected in the format of the GPG Annual Report which will be published in the first quarter of 2013. An update on Coats’ trading performance since the half year will be provided on 13 November within the GPG Interim Management Statement.

 

A £10m on-market buyback programme was announced on 3 September 2012, but no purchases have been made as at the date of this announcement. The Board has reviewed this programme and given recent progress with asset divestments has decided to extend the buyback to up to £70m, which would be expected to utilize fully the Company’s existing shareholder authority to buy back a maximum of 15% of its share capital, subject to the restrictions contained within that authority. All other terms of the buyback are as set out in the 3 September 2012 announcement. The Directors will continue to be free to sell shares in the Company subject to applicable laws and regulations.

 

This announcement does not constitute, or form part of, an offer or any solicitation of an offer for securities in any jurisdiction.