Methven Shareholders to Vote on UK Acquisition

Methven Shareholders to Vote on UK Acquisition at 26 July Meeting

Methven shareholders will vote at the company’s annual meeting on Thursday, 26 July, on a number of resolutions seeking their approval for the planned acquisition of one of the UK’s largest independent tap and showerware suppliers, Deva Tap Company Ltd (Deva), for an enterprise value of $59 million.

The purchase and associated funding arrangements, conditional on shareholder support, would see the New Zealand designer, manufacturer and marketing of leading edge showerware, tapware and valving more then triple its direct distribution reach.

The acquisition of the privately owned UK business which has 6% of the UK brassware market and established trade, merchant and DIY distribution, is intended to be funded through a combination of a $15 million institutional placement, $12.7 million rights issue, approximately $2.4 shares to key senior management of Deva and up to $30 million of long term debt, including existing Deva borrowings.

The institutional placement was successfully completed on 6 July and was close to three times subscribed. Â In total, 6,818,182 million shares are intended to be issued at a price of $2.20 per share, pending shareholder approval at the annual meeting.

The Notice of Meeting, sent on 11 July, contains full details of the resolutions to be voted on as well as explanatory information on the acquisition of Deva ahead of the issuing of the Investment Statement and Prospectus scheduled for 30 July.

A copy of the Notice of Meeting to Shareholders and Explanatory Memorandum can be found on the NZX and Methven website (www.methven.biz).

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