Tate & Lyle PLC FULL PENSION SCHEME BUY-IN WITH LEGAL & GENERAL (8661M)
19 Septiembre 2019 - 1:00AM
UK Regulatory
TIDMTATE
RNS Number : 8661M
Tate & Lyle PLC
19 September 2019
TATE & LYLE ENTERS INTO FULL DEFINED BENEFIT PENSION
SCHEME
BUY-IN WITH LEGAL & GENERAL
Agreement will deliver security for UK Scheme members while
removing future risk
for Tate & Lyle and saving GBP20 million of annual
contributions
19 September, 2019, London, UK: Tate & Lyle PLC ("the
Company") and the Trustee of the Tate & Lyle Group Pension
Scheme ("the Scheme"), the Group's UK pension scheme, today
announce an agreement for a GBP930 million bulk annuity insurance
'buy-in' with Legal & General Assurance Society Limited ("Legal
& General"). The agreement provides certainty and security for
the Scheme's affected members.
The buy-in secures an insurance asset from Legal & General
that fully(1) matches the remaining pension liabilities of the
Scheme, with the result that the Company no longer bears any
investment, longevity, interest rate or inflation risk in respect
of the Scheme. Under the transaction, the Company will not
contribute any incremental funding into the Scheme(1) .
The agreement is not anticipated to impact profit before tax for
the year ending 31 March 2020 but will eliminate non-cash net
finance income on the UK scheme accounting surplus(2) from the 2021
financial year. De-recognition of the accounting surplus will
result in a decrease in Group net equity by around GBP180
million.
Imran Nawaz, Chief Financial Officer of Tate & Lyle PLC,
said:
"This transaction represents a good outcome for our UK scheme
members, the Company and our shareholders. We have supported the
Scheme over many decades and made significant cash contributions to
remedy a deficit that has existed between the Scheme's assets and
liabilities. That funding, combined with excellent stewardship by
the Scheme's trustees, has meant that the Scheme can now be
de-risked for the benefit of members and the Company.
"Importantly, cash contributions into the Scheme will cease,
saving around GBP20 million of cash annually from the 2021
financial year(1) , allowing the Company to focus our future
investments on delivering profitable growth."
Michael Chatterton, Chairman of Trustees of the Scheme,
said:
"This is great news for Scheme members. After many years of
funding from Tate & Lyle and careful management, working
together in close partnership with the Company, we have now secured
our members' benefits through Legal & General. As a result, our
members can continue to look forward to enjoying retirement knowing
that their pensions are secure."
1 Subject to final price adjustment for bulk annuity
pricing.
2 In the year ended 31 March 2019 net finance income on the UK
scheme was GBP5 million.
END
Contacts:
Anna Taylor (media)
Corporate PR Manager
Tel: +44 (0)207 257 2209 or mobile: +44 (0)7766 361 515
mediaenquiries@tateandlyle.com
Christopher Marsh (investors)
VP Investor Relations
Tel: +44 (0) 20 7257 2110 or Mobile: +44 (0) 7796 192 688
About Tate & Lyle:
Tate & Lyle is a global provider of solutions and
ingredients for food, beverage and industrial markets.
Tate & Lyle operates through two global divisions, Food
& Beverage Solutions and Primary Products, supported by the
Innovation and Commercial Development and Global Operations teams.
Food & Beverage Solutions is focused on growth by building
leading positions globally in the categories of beverages, dairy,
and soups, sauces and dressings. Primary Products is focused on
delivering steady earnings and generating cash.
Food & Beverage Solutions consists of: Texturants, including
speciality starches; Sweeteners, including low- and no-calorie
sweeteners; and a Health and Wellness portfolio comprising mainly
speciality fibres; and Stabilisers and Functional Systems, which
are bespoke ingredient blends that ensure foods retain their
structure.
Primary Products consists of high-volume sweeteners, industrial
starches and fermentation products (primarily acidulants). It also
sells co-products from the corn milling process as animal
nutrition.
Tate & Lyle is listed on the London Stock Exchange under the
symbol TATE.L. American Depositary Receipts trade under TATYY. In
the year to 31 March 2019, Tate & Lyle sales totalled GBP2.8
billion.
For more information, please visit
http://www.tateandlyle.com
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END
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