Michelin updates Fenner acquisition financing arrangements

On 19 March 2018, Michelin announced it had reached an agreement on the terms of its acquisition of Fenner plc, specifically a recommended cash acquisition of Fenner’s entire issued and to be issued share capital. The plan is for the acquisition to be implemented by means of a court-sanctioned scheme of arrangement.

At the time of the announcement, Michelin had entered into a committed credit facility with Morgan Stanley (the ‘initial facility’) in order to secure funds for the acquisition. Yesterday, Michelin announced its entry into a new committed credit facility with Crédit Agricole Corporate and Investment Bank on 6 April; this committed credit facility replaces the initial facility. Consequently, Michelin terminated the initial facility on 6 April 2018.

All terms and conditions of the acquisition remain unchanged. Morgan Stanley, in its capacity as financial adviser to Michelin in relation to the acquisition of Fenner plc, confirms it is satisfied that Michelin has the resources available to satisfy in full the cash consideration payable under the terms of the acquisition.