Ancala Fornia has confirmed its offer for Dee Valley remains open and believes there is significant uncertainty over the deliverability of the rival Severn Trent Water scheme.
Ancala says it notes Severn Trent Water scheme is conditional, among other things, upon the approval by a majority in number of voting ordinary shareholders present, entitled to vote and voting at the court meeting in relation to the scheme, scheduled for 9.30 a.m. tomorrow (12 January) either in person or by proxy, representing not less than 75% in value of the voting ordinary shares voted by them.
Ancala also notes the announcement today by Dee Valley concerning the shareholder vote at the court meeting.
Ancala considers it unlikely that the announcement would have been made unless the transferred shares had been the subject of proxies submitted to vote against the Severn Trent Water scheme at the court meeting.
Ancala considers that the condition is unlikely to be met if this is the case and the votes of the transferred shares are taken into account.
Ancala considers that the announcement indicates significant uncertainty regarding the deliverability of the Severn Trent Water Scheme.
Ancala also confirmed that its voting share offer of 1,706 pence apiece and its non-voting share offer of 1,602 pence apiece remain open for acceptances and that the acceptance condition for its voting share offer is a simple majority.
As announced on 30 December, at 3.00 p.m. on the second closing date (29 December) Ancala had either acquired Voting Ordinary Shares or had received valid acceptances of the voting share offer in respect of a total of 1,704,392 voting ordinary shares, representing approximately 41.170f of the voting ordinary shares, all of which count towards the satisfaction of the acceptance condition.
Managing partner of Ancala Partners, Spence Clunie, said: "The position regarding the vote at the Court Meeting indicates significant uncertainty regarding the deliverability of the Severn Trent Water Scheme and, on the assumption that the Transferred Shares are voting against the Severn Trent Water Scheme, reflects the strength of the feeling of many Dee Valley stakeholders about the Severn Trent Water proposal. We continue to believe that the revised Ancala bid provides the best outcome for the company."
At 2:14pm: (LON:DVW) Dee Valley Group PLC share price was 0p at 1812.5p