Recommended Cash Offer for Sunderland Limited by KC Capital Limited on behalf of Drumaville Limited.
The Board of Drumaville and the Independent Directors
of Sunderland are pleased to announce that they have reached
agreement on the terms of a recommended cash offer for
Sunderland. The Offer is to be made by KC Capital Limited on
behalf of Drumaville, a company newly incorporated by Niall Quinn
and the Consortium Members and specifically formed for the purpose
of making the Offer.
The Offer will be 117 pence in cash for each Sunderland Share and values Sunderland’s issued share capital at approximately £10 million.
The Offer is conditional upon valid acceptances being received (and not, where permitted, withdrawn) in respect of more than 90 per cent. in nominal value of Sunderland Shares to which the Offer relates.
The Offer Price represents a premium to the price paid of 31 pence per Sunderland Share at the close of business on 8 May 2006, being the last trade facilitated through the Brewin Dolphin Scheme and the last price paid prior to the announcement of Drumaville’s interest in gaining control of Sunderland.
Drumaville has received irrevocable undertakings to accept the Offer (including from the Directors of Sunderland) in respect of 6,211,590 Sunderland Shares representing approximately 72.59 per cent. of the existing issued ordinary share capital.
The Independent Directors unanimously recommend that Sunderland Shareholders accept the Offer once it is made.
Commenting on the Offer, Niall Quinn, Chairman of Drumaville said:
"I am personally delighted, on behalf of my consortium company Drumaville, to be in a position to present this Offer to the shareholders and fans of SAFC.
"We believe this heralds a new beginning for Sunderland, but it's only going to happen if everyone comes together in a joint effort. My consortium are buying into the wonderful potential at the club and wish to help enable it to regain the status it truly deserves.
"I wish personally to say thanks to Bob Murray for his years of leadership and support and his numerous contributions to Sunderland and look forward to our continued friendship and association in the future."
