Dee Valley board backs Severn Trent revised offer

Dee Valley Group's board has withdrawn its recommendation of Ancala Fornia's offer and urged shareholders to accept a revised offer from Severn Trent.

Under the terms of the revised acquisition, Dee Valley ordinary voting shareholders will receive 1,825 pence in cash for each Dee Valley ordinary voting share. The revised acquisition includes a revised comparable cash offer for the Dee Valley ordinary non-voting shares priced at 1,713 pence per share.

It is intended that the revised acquisition of the Dee Valley ordinary voting shares will be implemented by means of a court-sanctioned scheme of arrangement. The revised acquisition values the entire issued share capital of Dee Valley at approximately £84.0 million.

The Dee Valley board considers that the revised acquisition represents a superior offer in terms of financial value for holders of Dee Valley ordinary voting shares and non-voting shares as compared with the revised Ancala proposal.

The Dee Valley board intends to recommend unanimously that:

- all Dee Valley ordinary voting shareholders vote in favour of the revised scheme and all holders of non-voting shares accept the Revised Severn Trent contractual offer.

At 8:07am:

(LON:DVW) Dee Valley Group PLC share price was +84p at 1812.5p

(LON:SVT) Severn Trent PLC share price was +11.5p at 2244.5p