The RESET plan is the only credible response to address URW’s challenges and protect the long-term interest of all shareholders

Nachrichtenquelle: globenewswire
19.10.2020, 21:55  |  245   |   |   


 

NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, OR JAPAN OR ANY OTHER JURISDICTION WHERE SUCH PUBLICATION, DISTRIBUTION OR RELEASE WOULD BE SUBJECT TO LEGAL RESTRICTIONS

THIS PRESS RELEASE IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES OF URW IN ANY JURISDICTION

Paris, Amsterdam, October 19, 2020

Press release

The RESET plan is the only credible response to address URW’s challenges and protect the long-term interest of all shareholders

URW’s Supervisory Board convened today and reiterated its unanimous support and commitment to the RESET plan presented on September 16, 2020, as the only credible response to secure its future over the long-term, in an environment where the retail world is facing unprecedented challenges with the COVID-19 crisis. To protect URW and its shareholders and preserve value, the Supervisory Board unanimously recommends all shareholders to vote in favour of the RESET plan and against the resolutions proposed by the activists.

Colin Dyer, Chairman of the Supervisory Board, declared: “Given these difficult times, the RESET plan is crucial to de-risking and securing the future continued stability of the business and position for long-term value creation. The activists' proposal involves high risk for the company and its shareholders. Their plan is based exclusively on large and uncertain disposals, with an undetermined time horizon and at uncertain prices. They do not take into account the immediate need to strengthen our balance sheet. We are fully aware of the efforts we are asking of our shareholders, but our RESET Plan is realistic and concrete. It offers an immediate solution to strengthen the Group's balance sheet in a volatile and uncertain environment, while preserving the Group's flexibility for the future.

The activists’ plan exposes URW and its shareholders to significant risk

The Supervisory Board considers that the activists’ proposal fails to address URW’s immediate capital structure strengthening needs and exposes URW and its shareholders to significant risk.

Betting the future of the Group mainly on a hypothetical disposal of the US business in 2-3 years, as the only alternative to the capital increase, is likely to put the company’s future at material risk. Moreover, exposing the Group to potential multiple notch rating downgrades and proposing to consume liquidity pending the sale of the US assets would risk leaving URW in negative territory and may force asset sales or a larger capital raise with less favorable terms in the future.

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Disclaimer

The RESET plan is the only credible response to address URW’s challenges and protect the long-term interest of all shareholders   NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, OR JAPAN OR ANY OTHER JURISDICTION WHERE SUCH PUBLICATION, DISTRIBUTION OR RELEASE WOULD BE SUBJECT TO LEGAL RESTRICTIONS …

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