01 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.
Today Egg announces that it has received an approach for part of the French business from Banque Accord and has granted exclusivity to conclude the agreement. This partial disposal would result in the re-deployment of approximately 100 of Egg France’s 450 workforce and would ensure continuity of service and product availability to the majority of Egg’s customers in France.
The approach received from Banque Accord is in respect of Egg’s unsecured lending business, which includes 66,000 credit card customers. Egg has 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 the prospective buyer 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:
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| Emma Byrne |
0207 526 2600 / 07775 657 241 |
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| Investors / Analysts: |
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| Kieran Coleman |
0207 526 2648 / 07711 717358 |