Retailer GUS plc declared the setting out details of its plans to demerge its remaining 65 per cent stake in Burberry Group plc by way of a dividend in specie, Burberry will post shortly a circular to shareholders setting out further details of the arrangements with respect to the proposed demerger.
Burberry will propose a series of resolutions to its shareholders, which the independent directors of Burberry believe would, if passed, allow the demerger to be implemented in a more orderly way, to the benefit of the Group and its shareholders.
Matters to be considered include approval of a demerger agreement between Burberry and GUS relating to such issues as pension liabilities, taxation and transaction expenses. Accordingly, the demerger is subject to shareholder approval from both Burberry shareholders and GUS shareholders.
Burberry will convene an extraordinary general meeting of shareholders on 12 December 2005 to consider the resolutions.
The expected timetable of principal events is set out below.
Luxury brand Burberry with a distinctive British sensibility, strong international recognition and differentiating brand values that resonate across a multi-generational and dual-gender audience. Company is distributing their products through a diversified network of retail, wholesale and licensing channels worldwide.
Leading retail & services provider GUS' activities comprise general merchandise retailing through Argos Retail Group, information and customer relationship management services through Experian and luxury goods through a majority shareholding in Burberry Group plc.