Strategic Review
RNS
RNS Number : 0847D
WYG Plc
26 January 2015
This is an announcement falling under Rule 2.4 of the City Code on Takeovers and Mergers (the "Takeover Code") and does not constitute an announcement of a firm intention to make an offer under Rule 2.7 of the Takeover Code. There can be no certainty that an offer will be made nor as to the terms on which any offer might be made.
FOR IMMEDIATE RELEASE
26th January 2015
WYG plc ("WYG" or the "Company")
Strategic Review
WYG, a global programme, project management and technical consultancy firm, today announces that the Board has initiated a formal review of strategic options open to the Company, with the intention of ascertaining whether there are options which could better enable WYG to take full advantage of its growth potential, to the benefit of clients, employees and shareholders.
Since its financial restructuring was completed in July 2011, WYG has implemented a strategy to refocus its operations and is now well established as a leading global consultancy with a strong International Development capability. WYG has achieved a turnaround in profitability and is now well positioned for future growth.
As can be seen from WYG's Half Year Report released on 2nd December 2014, WYG is enjoying strong growth in its project pipeline and is creating almost more opportunities than it can readily service directly using its existing model of organic growth, supplemented by smaller bolt-on acquisitions and partnerships.
Against this background, the Board of WYG recognises that this strategic review may or may not conclude that, given its current relative scale, being part of a larger business or expanding the scale of its current operating platform would provide significant advantages and better position the Company to take full advantage of its growth potential. At this stage, however, all options available to the Company are being considered.
The review will, therefore, incorporate a range of strategic options including a potential corporate transaction, such as a strategic partnership, a merger or acquisition to enhance the scale and breadth of WYG's platform, the acquisition of or subscription for the Company's securities by a third party, a sale of the Company, a new or extended bank facility or continuing to invest in expanding the business organically and through partnerships and bolt-on acquisitions.
As a consequence of this announcement, the Company is now considered to be in an "Offer Period" as defined in the Takeover Code. The dealing disclosure requirements and other provisions of the Code that now apply are listed below. A further announcement will be made as and when appropriate.