Financial News
ANNOUNCEMENT OF OFFER PRICE OF 230P PER SHARE
11 JULY 2002
(Not for distribution in the United States, Canada, Australia or Japan)
Burberry Group plc (Burberry) today announces an offer price of 230p per share for its initial public offering. At this price, the company will have a market capitalisation of £1.15bn.
Rose Marie Bravo, Chief Executive of Burberry, commented:
'We are pleased with the response to the partial flotation of Burberry in such challenging stock market conditions.
Burberry has strong business momentum with multiple growth opportunities by product, channel and region. We look forward to creating further value for both our new and existing shareholders.'
Additional information
The number of shares in issue at listing (prior to any exercise of the over-allotment option) will be 500,000,000. 112,359,600 new ordinary shares have been allocated to institutions and other individuals under the Global Offer, representing 22.5% of the issued share capital of Burberry. In addition, Burberry has granted Merrill Lynch International, as stabilisation manager, an over-allotment option for 30 days to purchase up to a further 16,853,940 new ordinary shares to meet over-allotments, if any, in connection with the Global Offer.
The shares will be listed on the London Stock Exchange under the symbol BRBY.L. Conditional dealings are expected to commence at 8am tomorrow on the London Stock Exchange. Admission to the Official List of the UK Listing Authority and commencement of unconditional dealings are expected to take place on 18 July 2002.
GUS plc (GUS), which retains a 77.5% stake in Burberry (assuming no exercise of the over-allotment option), has agreed not to dispose of any additional shares in Burberry for a period of at least 180 days following Admission of the Burberry shares to the London Stock Exchange.
The net proceeds of the offer will be used by Burberry to repay in part inter-company borrowings from GUS, leaving Burberry with a net cash balance of approximately £10m. GUS will use the proceeds from Burberry to repay short-term bank borrowings.
Enquiries
| Burberry | ||
| Rose Marie Bravo | Chief Executive | 020 7968 0000 |
| Mike Metcalf | CFO and COO | |
| Matt McEvoy | Investor Relations | |
| Gus | ||
| John Peace | Group Chief Executive | 020 7495 0070 |
| Fay Dodds | IR Director | |
| Finsbury | ||
| James Murgatroyd | 020 7251 3801 | |
| Abigail Wyatt | ||
| Merril Lynch | ||
| Bob Wigley | Investment Banking | 020 7628 1000 |
| Rupert Hume-Kendall | Equity Capital Markets | |
| Morgan Stanley | ||
| Vanessa Whyte | Global Retail and Luxury Goods Group | 020 7425 5000 |
| John Porter | Equity Capital Markets |
This announcement does not constitute or form part of an offer, or solicitation of an offer to purchase or subscribe for any GUS plc or Burberry Group plc shares. Prices and values of, and income from, shares may go down as well as up.
Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. Stabilisation/FSA.
This announcement is not for publication, distribution or release in the United States, Canada, Australia or Japan. This announcement does not constitute or form part of an offer or solicitation of an offer to purchase or subscribe for securities in the United States, Canada, Australia or Japan.
Shares in Burberry Group plc have not been and will not be registered under the US Securities Act of 1933 as amended and have not and will not be offered or sold in the United States absent registration or an exemption from registration. No public offering of securities is being made in the United States.
The contents of this announcement, which has been prepared by and is the sole responsibility of Burberry Group plc, has been approved by Merrill Lynch International and Morgan Stanley & Co. International Limited solely for the purposes of section 21 of the Financial Services and Markets Act 2000. Merrill Lynch International and Morgan Stanley & Co. International Limited can be contacted as stated above.
Merrill Lynch International and Morgan Stanley & Co. International Limited are the Joint Sponsors and Merrill Lynch International and Morgan Stanley Securities Limited are the Joint Global Co-ordinators and Joint Bookrunners for the Global Offer. Each of Merrill Lynch International, Morgan Stanley & Co. International Limited and Morgan Stanley Securities Limited are acting for Burberry Group plc and GUS plc in relation to the Global Offer and no one else and will not be responsible to anyone other than Burberry Group plc or GUS plc for providing the protections afforded to their respective clients, nor for providing any advice in relation to the Global Offer, the contents of this document or any transaction or arrangement referred to herein.