Spice PLC to recommend a 70p per share cash offer from Cinven

Spice PLC plans to recommend a 70p per share cash offer from UK private equity firm Cinven according to an announcement this morning. The announcement reads as follows:

The Board of Spice and Cinven Limited (“Cinven”) are pleased to announce that they are in advanced discussions regarding an offer being made for the entire issued and to be issued share capital of the Company at a price of 70 pence in cash per share, which would represent a premium of approximately 10.7 per cent to the closing share price of Spice on 1 September 2010 of 63.25 pence. In addition, Spice shareholders will be entitled to the final dividend of 1.22 pence per share to be paid on 14 September 2010. Any offer remains subject to a number of pre-conditions, including the satisfactory completion of confirmatory due diligence. However, Cinven has confirmed that any offer would not be conditional upon external financing.

Although the Board of Spice believes that the Company has a strong future as an independent business, it recognises that, due to the cash nature and premium of the potential offer, it is in shareholders’ interests to facilitate further discussions with Cinven.  Accordingly, subject to the final terms and conditions of the offer, the Board intends to recommend the offer of 70 pence per share from Cinven, if made.

The Board of Spice has agreed with Cinven to proceed on a bilateral basis from the date of this announcement until 27 September 2010 and all discussions with the other potential offeror have been terminated, subject to the requirements of the Code.

Established in 1977, Cinven is one of the most prominent and successful investors in the European buyout market, with offices in London, Paris, Frankfurt, Milan and Hong Kong. Cinven has invested in buyouts with a value in excess of €60 billion.

This announcement has been made with the approval of Cinven, and a further announcement will be made in due course.

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