Dignity PLC Response to statement made by Phoenix (2178V)
13 Abril 2021 - 1:00AM
UK Regulatory
TIDMDTY
RNS Number : 2178V
Dignity PLC
13 April 2021
Dignity plc (the "Company")
Response to statement made by Phoenix UK Fund Limited
("Phoenix") on 12 April 2021
The independent directors of the Company (the "Independent
Directors") note the most recent statement by Phoenix published on
its website on 12 April 2021. They note, in particular, the various
comments made by Phoenix regarding potential strategies that may be
adopted for the future direction of the group's business.
It should come as no surprise that many of the ideas disclosed
in Phoenix's most recent letter are amongst those currently being
assessed in detail by the Board. In the Company's letter to
shareholders dated 29 March 2021, the Independent Directors
commented on the fact that the vision and views on strategy of
Phoenix and those of the Board were already closely aligned, such
that the requisitioned shareholder meeting was wholly unnecessary.
The Board is well-advanced in its detailed planning towards the
announcement of a fully thought-through strategy plan, including
the possibility of a distribution of the Crematoria business to
existing shareholders on a pro rata basis. It was always intended
that the Board would announce its vision for the Company at the
time of the Company's AGM in June 2021 and this has been indicated
to the market for some time.
The Independent Directors find the statements made by Phoenix
relating to possible strategies (and public reference to unverified
valuations for the Crematoria division, in particular) to be deeply
irresponsible. There are significant nuances to any strategic plan
of this nature before it can be made public. The interests of all
stakeholders need to be carefully addressed including, in this
instance, the interests of bondholders and employees, as well as
shareholders. There also needs to be a full and complete
understanding of all potential regulatory aspects, so that the
Board can be sure of its capacity to deliver any publicly announced
strategy before it is announced. The Board has already indicated
that it is well-aware of the potential value of different elements
of the business on a stand-alone basis and of course a core
objective is to unlock value for the benefit of all shareholders.
However, it is inappropriate to hypothesize on strategies until
there is sufficient confidence in a methodology to deliver the
same. That Phoenix has chosen to "go public" on these matters
prematurely serves only as a further illustration of the lack of
suitability of Gary Channon to be appointed as someone responsible
for the executive function of the Company.
Not for the first time since the Board convened the General
Meeting to consider the resolutions proposed, Phoenix has made
ill-advised public statements which have been self-serving and have
had little regard for the wider interests of shareholders and other
stakeholders. The Board has been informed by proxy voting agents,
ISS, Glass Lewis and PIRC, that they are advising their members to
support the Board and vote against both resolutions at the
forthcoming General Meeting. In light of Phoenix's most recent
statements, the Independent Directors are more convinced than ever
that it is in the best interests of shareholders to allow the
current management team to finish its work without handing
executive control to Phoenix.
The Independent Directors have no hesitation in repeating their
recommendation that shareholders should vote AGAINST the
resolutions.
The Independent Directors of Dignity plc
Gillian Kent, Dean Moore and Paul Humphreys
Chris Lane
Tilly Abraham
Buchanan +44 (0)20 7466 5000
www.buchanan.uk.com Dignity@buchanan.uk.com
13 April 2021
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