News Releases
25th September 2007
Joint statement by Delta (Two) Limited and the trustees of the Sainsbury's pension schemes
Delta Two and the Trustees of Sainsbury’s pension schemes (together “the Parties”) jointly announce an update on the process regarding the discussions that will commence concerning Delta Two’s possible offer for Sainsbury’s and its implications for the funding of the Sainsbury’s pension schemes.
Following the announcement on 20 September 2007 confirming that the Board of Sainsbury’s had unanimously agreed to allow Delta Two to undertake confirmatory due diligence, Delta Two and the Trustees have now signed a non-disclosure agreement, which will be followed by a two-way exchange of confidential information.
Assessing the potential impact on the Sainsbury’s pension schemes of the proposed acquisition of Sainsbury’s by Delta Two is complex and requires careful consideration, by both Delta Two and the Trustees, of a significant level of confidential information. Such exchange is necessary so that Delta Two can formulate an appropriate pension proposal for the Trustees’ consideration and, in turn, so that the Trustees have the factual context in which properly to assess any pension proposal made by Delta Two.
Following the exchange of confidential information, the two parties will be able to engage in detailed discussions regarding the impact of the proposed transaction on the Sainsbury’s pension schemes and the appropriate terms of any agreement. Accordingly, Delta Two has not yet made any pension proposal to the Trustees and nor has it received any funding requirement proposal from the Trustees.
Discussions between the Parties will be kept confidential to the Parties and it is intended by the Parties that a further statement will be made in due course.
Commenting, Paul Taylor, Principal of Three Delta and Strategic Investment Adviser to Delta Two, said:
“Delta Two recognises the importance of ensuring that the Sainsbury’s pension schemes are appropriately funded and intends to work constructively with the Trustees to reach a timely agreement on the appropriate level of funding for the schemes. We are pleased that detailed discussions can now commence, following the signing of a confidentiality undertaking. We have a high regard for the management and employees of Sainsbury’s, and we and the Trustees are keen to reach appropriate agreement in a timely manner, which is in the best interests of the Company and the scheme members.”
