IPE Board Backs "Plan B" And Calls EGM For End Of Month

At a meeting this morning the IPE Board of Directors gave strong backing to the proposals to demutualise and sell 70% of the Exchange to five private investors (Plan B). Members of the IPE will be invited to vote on the future of the Exchange at an Extraordinary General Meeting to be held on Friday 30 July at 12 noon. The Board agreed that if their recommendations were not accepted by the Membership they would regard this as a vote of no confidence. In a letter to Members Lord Fraser of Carmyllie, Chairman of the IPE sets out the following advantages of the Plan B proposal: The Plan B investors bring to the IPE a range of experience in new contract development, European energy markets and technology which complement the existing skills andexperience of the IPE; The Plan B proposal has arisen from a well publicised competitive tender process during which expressions of interest were obtained from more than 15 outside investors and firm offers received from five; The Plan B investors have conditionally agreed to subscribe for shares; The Plan B investors have deposited with the IPE's solicitors £26 million in cash (this sum includes fees). Over £23 million of this is expected to be available for payment to Members within two business days of Plan B being approved at the EGM; All taxation and regulatory clearances for the Plan B proposal have been received; No shareholder will be able to vote more than 15% of the shares in the new holding company; The offer from the Plan B investors will lapse after 5 August 1999 unless approved at the EGM. Lord Fraser said after the Board meeting "the Board are convinced that Plan B offers the best possible future for IPE Members, customers and the wider energy industry. We attach so much importance to the success of this proposal that we regard it as a vote of confidence".