Enterprise Holdings Limited
Enterprise Holdings Limited: Enterprise Holdings’ CEO provides background information on Brexit
DGAP-News: Enterprise Holdings Limited / Key word(s): Miscellaneous 2016-07-05 / 07:00 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Enterprise Holdings' CEO provides background information on Brexit Great Britain has decided to leave the EU. Following the notification, the UK Government has two years from the date of triggering of the so called Article 50 of the Treaty of Lisbon (2007) within which to negotiate its exit arrangements with the EU. The founder and CEO of Enterprise Holdings Limited, Andrew Flowers, comments as follows: "It is impossible to predict with certainty what terms will, or indeed can be agreed, and in particular whether an EEA-type agreement could be negotiated between the EU and the UK giving the UK (including Gibraltar) continued access to the Single Market. Maybe Scottland manages to remain in the EU and so does Gibraltar. In both territories the majority of the population voted to stay in the EU. It should not be forgotten that the UK is the biggest net importer of EU goods and any negative arrangements that may effect the UK will be seen also by EU countries that sell goods (such as German car makers) to the UK, hence despite the rhetoric a favourable trade deal with access to the common market is likley to be achieved. Our Group's operating insurance company, Enterprise Insurance Company PLC, is located in Gibraltar and faces the risk of loosing passporting to EU countries. One of the options we are considering at the moment is to relocate the company from Gibraltar back into the EU. However, the essential point to make at the present time is that there is no immediate need to take decisions as companies should have the benefit of the two year transition period, unless exit discussions are concluded in advance of this time-frame. I want to point out that Enterprise Holdings Group currently generates less than 30% of its business from passporting into the EU. If the UK does not achieve EEA-style status within the next two years then we will simply move the business to an EU based carrier. Currently we see little or no impact of the Brexit scenario but when clarity is achieved we will issue a definitive statement. In April 2015 we brought related parties and insurance related businesses under the roof of the Holding which significantly increased the consolidated shareholders' funds by approx. GBP 20 million as the in-bound transfers included some property assets. This has strengthened the bondholders' position enormously. And even better, the new businesses (e.g. insurance broker, underwriting, reinsurance, claims handling management) came to the Group for free as the former shareholders just concentrated their business activities from outside the Group into the Enterprise Holdings Group. Again, there was no cash-outflow to the shareholders. It all was to improve the bondholders position and ultimately improve the profit and cash-flows of the Group. The operational insurance company is fully EU-regulated and under permanent review of the Financial Services Authority (FSA). This is a major quality characteristic that distiguishes the Enterprise Holdings bonds positively from others listed in the so called German SME bond segment. Additionally please keep in mind that the funds from the bond issue are used predominantly to finance the insurance business. This means that there is no asset transfer which is usually the case. We take the money from the bonds and invest it into the insurance company in line with the insurance guidelines and the relevant Solvency regulations. This means liquidity always remains liquidity on our balance sheet which provides a high level of flexibility. We regularly update the market and we are probably the only issuer that sets aside interest at excess levels into a special account which is publicly displayed on a monthly basis and indeed we are always available to answer client questions and to provide further comfort. Currently we are in the audit process of our financial figures for fiscal year 2015/16 that ended 31 March 2016. All consolidated companies are contributing positively to the Group's financial results. Disclosure of the annual report is scheduled for delivery on or before 30th September 2016." End of corporate news Enterprise Holdings Ltd. Group - an owner-lead insurance firm Lead by its founder the company holds several other subsidiaries together with affiliated service companies. The Group offers independent white label general insurance solutions, apart from life insurance products. The affiliated companies deliver insurance specific auditing services as well as administrative and marketing services. The Group focuses its activities on high-yield niches within the European general insurance market. The main category of the offered insurances is in the field of automobile damage and third party insurance, legal costs insurance, household contents insurance and guarantees. Main markets are currently the United Kingdom, France, Greece and Italy. Bond issue 2015/20 Since 30 March 2015 the Enterprise Holdings' corporate bond 2015/20 is listed in the Entry Standard segment at Boerse Frankfurt (International Security Identification Number (ISIN): DE000A1ZWPT5). Bond issue 2012/17 Enterprise Holdings' corporate bond 2012/17 is listed in the Entry Standard segment at Boerse Frankfurt (International Security Identification Number (ISIN): DE000A1G9AQ4) since 26 September 2012. The originally issued volume of the bond was 35m euro. During the exchange offer that ended 26 March 2015, holders of the bond exchanged 6.3m euro into the new bond 2015/20. Additionally in October 2015 the company redeemed Euro 9.2m bonds from an investment fund. Therefore the total volume of the bond 2012/17 currently is 19.5m euro. For more information about the bonds please visit our website, especially the sections "Bond 2015/20" and "Bond 2012/17" at www.enterprise-holdings.de Bond Investor Relations / Press Please direct all your requests to: max. Equity Marketing GmbH, Maximilian Fischer, Marienplatz 2, 80331 Munich, Germany Tel: +49 89 139 28890 E-Mail: ir@enterprise-holdings.de IMPORTANT NOTE - Disclaimer This information may not be disseminated outside of Germany and Austria, in particular not in the United States, to US Persons according to regulation S of the US Securities Act of 1933 or to publications with a general circulation in the United States. Any person who fails to comply with these restrictions may violate the security laws of certain jurisdictions, in particular of the United States. Bonds in Enterprise Holdings Limited are not publicly offered outside of Germany and Austria. The Notes will not be registered under the Securities Act of 1933, or any applicable state or foreign securities laws, and are subject to substantial restrictions on transfer. In particular, the Notes may not be offered or sold in the U.S., or to or for the benefit of U.S. persons, absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act. The securities mentioned in this press release are not being and will not be offered for sale to the public in the United States, Australia, Canada and Japan. --------------------------------------------------------------------------- 2016-07-05 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de ---------------------------------------------------------------------------
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