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BRIEF-DX, John Menzies ‍boards announce agreed revised terms of transaction​
June 5, 2017 / 6:27 AM / 2 months ago

BRIEF-DX, John Menzies ‍boards announce agreed revised terms of transaction​

June 5 (Reuters) - DX (Group) Plc:

* John Menzies' distribution division - update

* ‍update on proposed combination of DX and John Menzies' distribution division​

* ‍boards of DX and John Menzies today announce agreed revised terms of transaction​

* DX (group) - ‍based on a joint assessment, boards estimate that combination would generate cost synergies of around £10 million per annum​

* ‍envisaged that DX would acquire Menzies distribution for consideration, on a cash and debt free basis, comprising £40 million in cash​

* Co would also ‍issue new DX ordinary shares representing 65% of DX's issued share capital as enlarged by transaction​

* ‍cash consideration would be satisfied by new borrowings by enlarged group​

* ‍current DX shareholders would therefore own, in aggregate, 35% of DX's enlarged issued share capital​

* DX (group) - ‍proposed that approximately 17% of john Menzies' defined benefit pension scheme would transfer to enlarged group as part of transaction​

* DX (group) - ‍john Menzies intends to raise gross proceeds of about £30 million by way of a conditional cash placing of new shares, largely to institutional investors​

* ‍proceeds of placing would be retained by john menzies post completion of transaction​

* dx (group) - ‍in light of revised terms, gatemore, owner of 21.3% of DX, has entered into an irrevocable undertaking to vote in favour of resolutions​

* ‍boards of DX and John Menzies continue to anticipate transaction will be completed during summer of 2017​

* ‍discussions are ongoing and there can be no certainty that a transaction will occur​

* ‍transaction would be subject, inter alia, to approvals of both DX and John Menzies shareholders at respective general meetings​ Source text for Eikon: Further company coverage:

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