Statement re Strategic Update

    RNS Number : 0999K
  GNE Group PLC
  15 December 2008
   
 
 
 
 
 
 
                                                                             GNE Group PLC
                    
                                                                              Strategic Update
 
 
In the Circular to Shareholders issued on 18 September 2008, the Board of GNE Group plc (*GNE* or *Company*) outlined an investing strategy
and proposed to pay a special dividend. Subsequent to the General Meeting and the completion of the disposal of Petrol Express Limited, the
Board was approached by a new investor group with a proposal to convert GNE into an investment company targeted at the technology sector.
The Board has considered this proposal particularly in light of changes in the Company*s shareholder register. As a result the Board intends
to issue a Circular to Shareholders (*Circular*) shortly outlining this new strategy and recommends that shareholders adopt this new
proposal.
 
As a result of the strategy change, it may be necessary to resubmit the Substantial Shareholder Exemption tax clearance and it is therefore
inappropriate to proceed with the special dividend proposed in the Circular to Shareholders dated 18 September 2008. However, as soon as
practicable and as permissible, the Board intends to exercise its existing authority approved at the last Annual General Meeting on 26 June
2008 to commence a limited share buy back programme (whilst also providing liquidity in the Company*s shares, for many UK higher rate tax
paying private shareholders, such share buy back programmes can be more tax efficient). The Board also intends to propose to renew and
increase the share buy back authorisation in the Circular.
 
As a result of this change, the Board will also consider the future strategy for the retained operating business activities in due course.
 
The Board is pleased to announce that Mr Martyn Roy Ratcliffe (aged, 47) has been appointed a Director of GNE with immediate effect. Mr
Ratcliffe is Chairman of Microgen plc. Any further details required to be disclosed pursuant to paragraph (g) of Schedule 2 of the AIM Rules
for Companies will be disclosed as soon as practicable. Mr Ratcliffe has purchased 2,119,927 Ordinary Shares representing 15.0% of the
issued share capital of the Company. For the purposes of the Takeover Code, Mr Ratcliffe, North Atlantic Smaller Companies Investment Trust
Plc and Mr Patrick Barbour are presumed to be acting in concert. Following acquisitions on Friday 12 December 2008 collectively the Concert
Party holds 4,048,874 ordinary shares representing 28.7% of the issued share capital of GNE. If shareholders approve the new investing
strategy proposed by the Board, Mr Ratcliffe will be appointed Executive Chairman of the Company.
 
While some shareholders may be disappointed that the special dividend will not now proceed, the Board considers that overall the proposed
strategy offers a more attractive opportunity for the Company and its shareholders, through increased liquidity in GNE shares and the
potential for the share price to reflect the true value of the Company. The investor group, and Mr Ratcliffe in particular, have
demonstrated their tangible commitment to the proposed strategy.
 
 
 
Enquiries:
 
GNE Group plc                                                            Tel: +44 (0) 870 241 0454
David Port, Chairman                                     
 
Seymour Pierce
Richard Feigen / Sarah Jacobs                                      Tel: +44 (0) 20 7107 8000
                                                           
Media enquiries:
Abchurch
Henry Harrison-Topham / Ariane Comstive                  Tel: +44 (0) 20 7398 7702
                                                           
 
 
 
 

This information is provided by RNS
The company news service from the London Stock Exchange
 
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