Uniq seeks takeover by own pension fund

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

In a radical "deficit for equity" swap Uniq's management, under chief executive Geoff Eaton, has agreed with the pension fund trustee to give it a 90% stake in the company in return for wiping out the fund's £436 million deficit. Existing shareholders end up with 10%.

Uniq has a stock market value of just £8 million and could be wiped out by the black hole.

The deal must be cleared by the Pensions Regulator which in July turned down a plan to reduce the deficit through increased contributions for at least 30 years.

Uniq, which has cash, would gear up and buy back some of the shares from the pension fund worth £25 million to £30 million leaving the fund still as the largest shareholder with a stake which would hopefully rise in value.

Eaton, who reported a 9.9% rise in third quarter sales, said: "This proposal is only possible because we have a business which is improving."

The fund has around £600 million of assets and has recently sold some £180 million of equities and moved all its funds into gilts to derisk its portfolio.
Uniq shares rose ½p to 7½p.