Coats to delist from NZX and ASX

Coats Group plc (‘Coats’ or the ‘Company’), the world's leading industrial thread and consumer textile crafts business, today announces its decision to simplify its listing structure and delist its shares from both the NZX Main Board (‘NZX’) and the Australian Securities Exchange (‘ASX’). The intended date for delisting is 24 June 2016, at which point Coats shares would only be tradable on the Main Market of the London Stock Exchange (‘LSE’).

The decision reflects the much reduced shareholder base in the two countries, the benefit of concentrating trading volumes on one market, thus moving towards indexation on the LSE, and the transition of the Company from an investment company to a UK headquartered, global industrial manufacturing business. In addition the Company will eliminate the costs and complexities arising from a triple listing and share register structure.

Both the NZX and ASX have advised Coats that they have approved the delisting requests (in the case of ASX, on the in-principle basis which is its standard procedure), subject to conditions.

Coats will seek shareholder approval to delist from the NZX by way of an ordinary resolution (requiring approval of 50% of votes cast) at next year’s Annual General Meeting, scheduled for 18 May 2016. If the resolution is approved the last day on which shareholders will be able to trade Coats shares on the NZX and CDIs on the ASX is expected to be 21 June 2016. This timeframe provides a notice period of more than seven months to allow adequate time for New Zealand and Australian shareholders to consider their ongoing ownership of shares before Coats moves to a single LSE listing.

Additional announcements will be made to the NZX and ASX, and notices will be sent to shareholders on the New Zealand branch register and CDI holders on the Australian branch register, outlining the proposed delisting process and their available options. All information will be made available at coats.com/investors/delistings.

Commenting on today’s announcement Mike Clasper, Chairman, said:

‘We are now a UK headquartered, global industrial manufacturing business, having moved away from our New Zealand investment company past. All major investments apart from the Coats business have been sold, culminating in the Company changing its name from Guinness Peat Group to Coats Group. We have no material operations or executive Directors in New Zealand or Australia and earlier this year Sir Ron Brierley ended his long association with the Company by stepping down from the Board and selling the majority of his shares. These changes have contributed to a significant shift in our shareholder register, with more than 65% of shareholders now UK based and less than 20% in New Zealand and Australia. For these reasons the Board believes the benefits of moving to a single London listing outweigh those of remaining on the NZX and ASX.’