Put options
As part of its takeover of The Laxey Investment Trust plc ("TLIT") announced on 4 July 2008, LIT conditionally granted options to shareholders in The Laxey Investment Trust plc enabling them, if such conditions were satisfied, to require LIT to purchase all their ordinary shares in LIT at 11.3 pence per share during the period of ten weeks commencing on 16 March 2009 and ending on 29 May 2009 (the "Options"). The Options were conditionally granted to former TLIT shareholders pursuant to a deed poll executed on 13 October 2008 (the "Deed Poll") in respect of those ordinary shares in LIT which the TLIT shareholders were issued with in connection with the acquisition of TLIT.
After careful consideration the board of LIT has decided that, in light of current market conditions, it is prudent for the Company to preserve cash and that the exercise of the Options is not to the benefit of the remaining LIT shareholders. As such the conditions relating to the grant of the Options have not been satisfied and accordingly the Options are not capable of being exercised.
However, the LIT board remains committed to the principle of enabling the former TLIT shareholders to require LIT to purchase their ordinary shares in LIT and the directors of LIT are pleased to confirm that the Company has today executed a new deed poll (the "Subsequent Deed Poll") on improved terms compared to the existing Deed Poll whereby LIT has conditionally granted new options to the former TLIT shareholders enabling them to require LIT to purchase their ordinary shares in LIT at 12 pence per share (an increase of 6.2% compared to the initial option price of 11.3 pence per share) during the period of ten weeks commencing on 14 September 2010 and ending on 20 November 2010.
Those former TLIT shareholders who still hold any of the original LIT shares they were issued in connection with LIT's acquisition of TLIT will shortly receive a copy of the Subsequent Deed Poll. The board of LIT will make a further announcement in respect of the options that have been conditionally granted under the Subsequent Deed Poll in 2010.
For more information, please contact:
LIT plc 01624 690 900
Alex Paiusco, Chief Executive
Mike Haxby, Chief Financial and Risk Officer
KBC Peel Hunt Ltd, Nominated Adviser and Broker 020 7418 8900
Guy Wiehahn or Oliver Stratton
Pursuant to the terms of the Deed Poll, the grant of the Options is subject to conditions that the directors of LIT are satisfied the Company has the cash resources to enable it to effect such buy back, that the board of LIT remain satisfied that the exercise of the Options is to the benefit of the other LIT shareholders and that the terms of the grant of Options are fair and reasonable to the Company and the other LIT shareholders and that the Company is lawfully able to make such purchase.