Renishaw Plc - Update on Formal Sale Process & Current Trading
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Renishaw plc ("Renishaw" or the "Company")
Update on Formal Sale Process
7 July 2021
Further to the announcement of 2 March 2021 commencing a Formal Sales Process under the City Code on Takeovers and Mergers (the "Takeover Code") by the Company (the "FSP"), the Board of Renishaw announces that it has unanimously decided to conclude the FSP.
The Board carefully reviewed a number of proposals with its advisers and unanimously concluded that none would meet the Board's objectives of delivering an outcome that satisfactorily met the interests of all stakeholders.
Sir David McMurtry and John Deer have indicated to the Board they remain committed to Renishaw and have no intention of selling their shares on the market for the foreseeable future.
We have seen a strong trading performance in the final quarter of the financial year ended 30 June 2021 and finished the year with a record order book. We now expect revenue for the year ended 30 June 2021 to be in the range of £562m to £567m and adjusted profit before tax to be in the range of £116m to £121m.
Sir David McMurtry, Executive Chairman of Renishaw, and John Deer, Non-Executive Deputy Chairman, commented:
"At the start of this process we made it very clear that, with the Board, we were focused on ensuring that we find the right new owner for our business. Whilst the formal sale process did not result in a new owner for Renishaw, we are satisfied that it ensured a thorough and rigorous process that enabled us to evaluate a wide range of potential buyers.
We remain fully committed to Renishaw and have indicated to the Board that we have no intention of selling our shares on the market for the foreseeable future. We continue to enjoy good health and as we consider the future of our shareholdings in due course, we intend to follow an orderly process that continues to take into account the interests of all stakeholders.
Renishaw is a very special business with a highly successful business model and a very exciting future. We would like to thank all our employees for their dedication to the Company."
Sir David Grant, Senior Independent Non-Executive Director at Renishaw, commented:
"The Board conducted a formal sale process to investigate whether we would receive a proposal from a potential new owner that would be in the interests of all stakeholders. We received a number of proposals that we considered carefully but the Board has concluded that none of the proposals met our objectives.
I am pleased that the founders have indicated their continuing commitment to Renishaw. The business is in a strong strategic and financial position. Renishaw and its stakeholders have every reason to look to the future with optimism and confidence. On behalf of the Board, I would like to thank our employees for their continued focus and commitment to Renishaw."
The person responsible for release of this announcement on behalf of the Company is Jacqueline Conway, General Counsel and Company Secretary.
Following this announcement, the Company is no longer considered to be in an "offer period" as defined in the Takeover Code and the requirement to make disclosures under Rule 8 of the Takeover Code has now ceased.