Update on Formal Sale Process and Strategic Review

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN ANNOUNCEMENT OF A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE AND THERE CAN BE NO CERTAINTY THAT ANY FIRM OFFER WILL BE MADE, NOR AS TO THE TERMS ON WHICH ANY OFFER WILL BE MADE

THIS ANNOUNCEMENT CONTANS INSIDE INFORMATION FOR IMMEDIATE RELEASE

Tekmar Group plc

Update on Formal Sale Process and Strategic Review Process

On 13 June 2022, the Company announced that the Board had commenced a strategic review to seek a strategic partner to support its opportunities for growth and provide additional balance sheet strength. These options included, but were not limited to, a sale of the Company conducted under the framework of a "formal sale process" in accordance with the Takeover Code.

Following a review of the proposals received, a preferred partner has been granted a 60 day-period of exclusivity to carry out further due diligence and finalise its proposal.  The exclusivity period relates only to alternate debt or equity financing proposals and, for the avoidance of doubt, does not prevent an offer being made for the Company by a third party under the framework of the Company's formal sale process. 

The proposal being considered represents a strategic investment from a global institutional investor in the energy sector, which would provide funding for the Company to follow an ambitious plan for growth, both organically and by acquisition.

The proposal being considered would not result in an offer being made for the Company's shares but would represent new capital investment, at or around the current share price, and would allow the Company to retain its admission to trading on AIM.

There is no guarantee that this proposal will be completed, and further announcements will be made as required.  If the proposal is successfully completed, then this will conclude the Company's strategic review and formal sale process.

Enquiries

Tekmar Group plc

Alasdair MacDonald, CEO  +44 (0)1325 349 050

Derek Bulmer, CFO

Bamburgh Capital Ltd (Rule 3 Adviser and Joint Financial Adviser)

Murdo Montgomery  +44 (0)131 376 0901

Richard Evans  +44 (0)161 521 0286

Alex Clarkson  +44 (0)161 240 7550

Singer Capital Markets (Nominated Adviser, Joint Financial Adviser and Broker)

Rick Thompson  +44 (0)20 7496 3000

Rachel Hayes

Additional information

The person responsible for arranging the release of this announcement on behalf of the Company is Alasdair MacDonald, Chief Executive Officer.

In accordance with Rule 26.1 of the Code, a copy of this announcement will be available (subject to certain restrictions relating to persons resident in restricted jurisdictions) at  https://investors.tekmar.co.uk/investors/investor-centre/ by no later than 12 noon (London time) on the business day following the date of this announcement. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulation (EU) no. 596/2014 (as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018). On the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Bamburgh Capital Ltd, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the Company and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.

Singer Capital Advisory LLP, which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for the Company and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in connection with the subject matter of this announcement.