<< home

Insight Marketing - Client News
Friday, June 23, 2006
Recommended cash offer by Evolution Securities Limited on behalf of Redstone plc for Symphony Telecom Holdings plc

Proposed placing of 381,350,000 New Redstone Shares at 5.25 pence per New Redstone Share

* Redstone plc ("Redstone"), the national communications services provider, announces today a recommended cash offer for Symphony Telecom Holdings plc ("Symphony"), which values the existing issued share capital of Symphony at approximately £16.9 million and assuming full exercise of rights under the existing option schemes of Symphony, following the Offer becoming unconditional, at £17.3 million.

* Symphony is a leading UK distributor of mobile and fixed line telecommunications products and services. It sells mobile, fixed line and data products and services directly to the SME markets and also acts as a distributor for all five mobile network operators within the UK.

* The Redstone Directors believe that the Acquisition is a further significant step towards establishing Redstone as a leading UK IT and communications solution provider.

* The Redstone Directors believe that the Acquisition provides the Group with the following principal strategic benefits:
o the addition of a mobile telecommunications offering;
o the addition of over 8,000 more corporate and SME customers;
o cost savings through synergies from combining the two UK based fixed line telephony businesses;
o the addition of alternative suppliers of fixed line telephony;
o the addition of a UK based network of dealers as channel partners for the Group's existing products; and
o the ability to bundle mobile telephony with Redstone's existing fixed line telephony, broadband and other IT and
communication solutions and offer a "one stop shop" to the Enlarged Group's customers.

* In order to finance the cash consideration payable by Redstone pursuant to the Offer and to provide additional working capital for the Enlarged Group, the Company proposes to raise approximately £20.0 million before expenses (£18.1 million net of expenses) by way of a placing of New Redstone Shares at a price of 5.25 pence per share (the "Placing"). Redstone intends to post a circular to Redstone Shareholders setting out details of the Placing and convening an Extraordinary General Meeting and the formal offer documentation to Symphony Shareholders as soon as reasonably practicable.

Martin Balaam, Chief Executive of Redstone, commented, "The offer for Symphony represents a key step in our stated strategy to broaden our product offering and take advantage of consolidation in this industry. We believe that the integration of Symphony with Redstone will realise significant synergies and opportunities to cross sell to each of Symphony's and Redstone's customer bases. We believe that this acquisition enhances our market position and ensures we are best placed to generate future growth and shareholder returns."

Redstone plc
Tel. +44 (0)845 200 2200
Martin Balaam, Chief Executive
Tim Perks, Chief Financial Officer

Symphony Telecom Holdings plc
Tel. +44 (0)1442 283300
Martin Turner, Chief Executive
Ian Brewer, Finance Director


This feed contains news releases issued by the technology clients of Insight Marketing and Communications Ltd


Subscribe with Bloglines
Archived News
November 2004
December 2004
January 2005
February 2005
March 2005
August 2005
September 2005
October 2005
November 2005
December 2005
January 2006
February 2006
March 2006
April 2006
May 2006
June 2006
July 2006
August 2006
September 2006
October 2006
November 2006
December 2006
January 2007
February 2007
March 2007
April 2007
May 2007
June 2007
July 2007
August 2007
September 2007
October 2007
November 2007
January 2008