05 Oct 2004
Update on closure of Egg France
On 13th July the Board of Egg plc (“Egg”) announced that it had begun to take the necessary steps to withdraw from the French market.
On 1st October 2004 Egg announced that it had received an approach for the consumer credit part of the French business from Banque Accord and had granted exclusivity to conclude the agreement.
Today Egg announces that it has received a further approach in respect of Egg’s savings and online brokerage business, which includes approximately 45,000 savings and investment accounts, from ING Direct France and has granted exclusivity to conclude the agreement. This partial disposal could result in the re-deployment of up to 40 of Egg France’s 450 workforce and would reinforce continuity of service and product availability to Egg’s customers in France.
Egg has also begun consultation with the French Works Council regarding this potential disposal and is also seeking all regulatory clearances to proceed. Egg will update the market in due course on how discussions with the Works Council and prospective buyers progress.
We remain confident that the closure costs of Egg France will be delivered within the previously announced provision of €170 million (£113 million) which has been raised in the Q3 2004 accounts.
- ends -
Notes to editors:
- Egg will be announcing its interim results for the period to 30 September 2004 on 19th October 2004 at 07.00h.
- Egg plc floated on 12 June 2000 and is listed on the London Stock Exchange. Prudential plc holds approximately 79% of the share capital.
For further information, please contact:
||0207 526 2600 / 07775 657 241
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