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Scottish Highland (SHH)

Scottish Highland

Recommended Cash Offer-PART 1
SCOTTISH HIGHLAND HOTELS PLC
18 August 1999

PART 1

This  announcement is not for release, publication or distribution
in  or  into  the United States, the Republic of Ireland,  Canada,
Australia or Japan.
                                 
       RECOMMENDED CASH OFFER ON BEHALF OF PARAMOUNT HOTELS
       INVESTMENTS LIMITED FOR SCOTTISH HIGHLAND HOTELS plc

Summary

*    The  board  of  Paramount Hotels Investments  Limited  ('Paramount
     Hotels  Investments')  and  the  Directors  of  Scottish  Highland
     Hotels  plc  ('Scottish  Highland')  announce  the  terms   of   a
     recommended cash offer, to be made by Apax Partners & Co.  Capital
     Limited on behalf of Paramount Hotels Investments, to acquire  the
     entire   issued  and  to  be  issued  share  capital  of  Scottish
     Highland. The formal Offer Document will be despatched as soon  as
     practicable.
     
*    The  Offer  will be 130p in cash for each Scottish Highland  Share
     which values Scottish Highland's existing issued share capital  at
     approximately   £38   million.  In  addition,  Scottish   Highland
     Shareholders  on  the  register at the close  of  business  on  13
     August  1999, will be entitled to receive and retain  the  interim
     dividend  of 1.4p (net) per Scottish Highland Share in respect  of
     the  current  financial year.  Scottish Highland has  announced  a
     payment date of 6 September 1999.
     
*    The  Offer price of 130p per Scottish Highland Share represents  a
     premium of approximately 51 per cent. to the Closing Price of  86p
     per  Scottish Highland Share on 22 June 1999 (the last dealing day
     prior  to  the  date  on  which Scottish Highland  announced  that
     preliminary  discussions  were taking place  with  a  third  party
     which  may  or  may not lead to an offer being made  for  Scottish
     Highland).
     
*    Paramount  Hotels Investments has commitments to accept the  Offer
     in  respect of, in aggregate, l9.02 per cent. of the issued  share
     capital of Scottish Highland.
     
*    Paramount  Hotels Investments is a newly incorporated company  and
     is  a  wholly owned subsidiary of Paramount Hotels. The  Paramount
     Hotels Group is majority owned by the Alchemy Investment Plan.
     
*    On  behalf of the Directors of Scottish Highland, Hamish Grossart,
     non-executive chairman of Scottish Highland, said:
     
     'We  are  pleased  to have secured an offer which represents  good
     value  for  shareholders.   When  complete,  the  offer  will  see
     Scottish  Highland  become  part of a larger  but  entrepreneurial
     group   with   similar   operating  philosophies   allowing   good
     opportunities  for  management and staff  and  offering  customers
     access to a wider UK network of hotels.''
     
*    Commenting on the Offer, Martin Bolland of Alchemy Partners said:
     
     'We believe that the Offer will enable the Scottish Highland         
      Group hotels to benefit from the financial, management and          
      marketing resources of being part of a larger hotel group.'          
     
*    Michael Purtill, Managing Director of Paramount Hotels Group,
     commented:
     
     'We are pleased to have completed negotiations with Scottish          
      Highland to enable us to make the Offer.  We believe that           
      Scottish Highland's portfolio of hotels and their management         
      style will compliment our own portfolio and management in a way        
      that will allow the new merged group to prosper and to access new       
      opportunities'                                
     
The above summary must be read in conjunction with the full text of the
following announcement.

Press enquires

For further information, please contact:

Alchemy Partners
Martin Bolland                          0171 240 9596

Paramount Hotels Group Limited
Michael Purtill                         0113 238 0033
Ian Goulding

Apax Partners
Richard Hughes                          0161 831 9133

Scottish Highland
Hamish Grossart                         0468 025209
Alasdair Cameron                        0141 331 6620

Bell Lawrie
Elizabeth Kennedy                       0141 221 7733

Apax  Partners, which is regulated by The Securities  and  Futures
Authority  Limited, is acting for Paramount Hotels  and  Paramount
Hotels  Investments and no one else in connection with  the  Offer
and  will not be responsible to anyone other than Paramount Hotels
and  Paramount  Hotels Investments for providing  the  protections
afforded  to customers of Apax Partners nor for giving  advice  in
relation to the Offer.

Bell  Lawrie,  which  is regulated by The Securities  and  Futures
Authority Limited, is acting for Scottish Highland and no one else
in connection with the Offer and will not be responsible to anyone
other   than  Scottish  Highland  for  providing  the  protections
afforded  to  customers of Bell Lawrie or  for  giving  advice  in
relation to the Offer.

The  Offer will not be made, directly or indirectly, in,  into  or
from  the United States, or by use of the United States mails,  or
by  any  means  or instrumentality of United States interstate  or
foreign  commerce,  or  any facility of a United  States  national
securities exchange nor is it being made, in, into or from Canada,
Australia or Japan. Accordingly, copies of this document  are  not
being  and  must  not be mailed, forwarded, sent,  transmitted  or
otherwise distributed in, into or from the United States,  Canada,
Australia or Japan and persons receiving this document (including,
without  limitation, custodians, nominees and trustees)  must  not
distribute,  forward, mail, transmit or send it in, into  or  from
the  United  States,  Canada, Australia  or  Japan.  All  Scottish
Highland  Shareholders  (including, without limitation,  nominees,
trustees or custodians) who would, or otherwise intend to, forward
this  document to any jurisdiction outside the UK or  to  overseas
persons should seek appropriate advice before taking any action.

       RECOMMENDED CASH OFFER ON BEHALF OF PARAMOUNT HOTELS
       INVESTMENTS LIMITED FOR SCOTTISH HIGHLAND HOTELS plc
                                 
1.  INTRODUCTION
    
The  boards  of  Paramount Hotels Investments and Scottish  Highland
announce  that  agreement  has  been  reached  on  the  terms  of  a
recommended cash offer for the whole of the issued and to be  issued
share capital of Scottish Highland.

The  Offer  values  the existing issued share  capital  of  Scottish
Highland  at  approximately £38 million and each  Scottish  Highland
Share  at  130p. The Offer represents a premium of approximately  51
per cent. to the Closing Price of 86p per Scottish Highland Share on
22  June  1999  (the  last dealing day prior to the  date  on  which
Scottish Highland announced that preliminary discussions were taking
place with a third party which may or may not lead to an offer being
made for Scottish Highland).

Paramount Hotels Investments is a newly incorporated company and  is
a  wholly owned subsidiary of Paramount Hotels. The Paramount Hotels
Group is majority owned by the Alchemy Investment Plan.

2.  THE RECOMMENDED OFFER
    
On  behalf of Paramount Hotels Investments, Apax Partners will offer
to  acquire, on the terms and subject to the conditions set  out  or
referred to below and in Appendix I and the further terms to be  set
out  in the Offer Document and in the Form of Acceptance, all of the
Scottish Highland Shares on the following basis:
        
         for each Scottish Highland Share        130p in cash
                                  
Scottish  Highland  Shareholders on the register  at  the  close  of
business  on 13 August 1999 will be entitled to receive  and  retain
the  interim dividend of 1.4p (net) per Scottish Highland  Share  in
respect  of  the  current financial year.    Scottish  Highland  has
announced a payment date of 6 September 1999.

Under  the  Offer, Scottish Highland Shares will be  acquired  fully
paid  and  free  from  all  liens, equities, charges,  encumbrances,
rights  of pre-emption and other third party rights or interests  of
any  nature whatsoever and together with all rights now or hereafter
attaching  thereto, including the right to receive  and  retain  all
dividends and other distributions declared, made or paid on or after
17 August 1999, save as provided above.

The  Offer  extends to any Scottish Highland Shares  unconditionally
allotted  or  issued  prior to the time the Offer  closes  (or  such
earlier  time as is mentioned in the definition of Scottish Highland
Shares  in  Appendix  II)  as a result of the  exercise  of  options
granted  under  the  Scottish  Highland  Share  Option  Schemes   or
otherwise.

3.  UNDERTAKINGS TO ACCEPT THE OFFER
    
Paramount  Hotels  Investments has received from the  Directors  and
from  or  on  behalf of certain associated persons of the  Directors
irrevocable  undertakings to accept the Offer in  respect  of  their
holdings   of  1,997,880  Scottish  Highland  Shares  in   aggregate
(representing  approximately 6.84 per cent. of the  existing  issued
share  capital of Scottish Highland). These undertakings will remain
binding even in the event of a higher competing offer being made for
Scottish Highland Shares unless the Offer lapses or is withdrawn.

In  addition, irrevocable undertakings to accept the Offer have been
received from Dunedin Enterprise Investment Trust plc in respect  of
3,560,000   Scottish  Highland  Shares  in  aggregate  (representing
approximately  l2.18 per cent. of the existing issued share  capital
of Scottish Highland).  This undertaking will cease to be binding in
the  event that a third party announces a firm intention to  make  a
cash  offer  for  Scottish Highland Shares by 28  August  1999  (the
making  of which offer is not, or has ceased to be, subject  to  any
pre-condition), where the value of that competing offer is not  less
than 140p per share unless Paramount Hotels Investments announces  a
revised offer, with a consideration per share at least equal to such
competing  offer,  within seven days of such competing  offer  being
made  (of if later, the time at which the making of the third  party
offer ceases to be subject to any pre-condition).

Accordingly, Paramount Hotels Investments has commitments to  accept
the Offer in respect of, in aggregate, approximately l9.02 per cent.
of the issued share capital of Scottish Highland.

4.    FINANCIAL EFFECTS OF ACCEPTANCE
      
On  the  bases  and  assumptions set out in  the  notes  below,  for
illustrative  purposes only and assuming the  Offer  becomes  or  is
declared  unconditional in all respects, the following  table  shows
the  financial  effects of acceptance of the Offer on capital  value
and income for a holder of one Scottish Highland Share:

(i)   Capital Value
                                                  Notes          (p)
                                             
Cash consideration                                               130
Market value of one Scottish Highland Share         (i)           86
                                                                _____ 
Increase in capital value                                         44
                                                                _____    
Representing an increase of                                      51%
                                                                    
Income                                                   
Gross income from re-investment of                 (ii)         7.52
consideration
Gross dividend income on one Scottish             (iii)         5.00
Highland Share
                                                                _____
Increase in income                                              2.52
                                                                _____    
Representing an increase of                                      50%
     
Notes:-

(i)  The market value of one Scottish Highland Share is based on the
     Closing  Price of 86p per Scottish Highland Share  on  22  June
     1999,  the last dealing day prior to the date on which Scottish
     Highland  announced  that preliminary discussions  were  taking
     place  with a third party which may or may not lead to an offer
     being made for Scottish Highland.

(ii) The cash consideration is assumed to be re-invested so as
     to  yield interest at a rate of 5.79 per cent. per annum, being
     the  gross redemption yield for the FTSE Actuaries 5 year Gilts
     Index  as  published in the Financial Times on 17  August  1999
     (the  latest practicable date prior to the publication of  this
     document).

(iii)The  gross dividend income from a Scottish Highland Share
     is  based  on  the  total  dividend of 4p  (net)  per  Scottish
     Highland  Share  paid in respect of the year ended  31  October
     1998,  together with the associated tax credit of  20/80ths  of
     the amount payable.

(iv) Save  as referred to in note (iii) above, no account  has
     been taken of any liability to taxation.

5.  INFORMATION ON THE SCOTTISH HIGHLAND GROUP
    
The  Scottish  Highland Group is a Scottish based hotel  group  with
five  hotels  located in Scotland and two in Northern  England.  The
hotels, five of which are four star and two of which are three star,
have  a  total  of  635  bedrooms. All the  hotels  have  conference
facilities and all but one have leisure clubs.

For  the  year ended 31 October 1998, Scottish Highland  reported  a
profit on ordinary activities before taxation and exceptional  items
of  £4.5  million (1997: £3.5 million) and basic earnings per  share
excluding  exceptional items of 13.4p (1997: 12.1p) on  turnover  of
£21.8  million  (1997:  £17.7  million).  As  at  31  October  1998,
consolidated net assets were £32.4 million (1997: £30.4 million).

In the six months ended 30 April 1999, Scottish Highland reported  a
profit on ordinary activities before taxation of £1.1 million (1998:
£1.4  million) and basic earnings per share of 3.4p (1998: 4.0p)  on
turnover of £9.3 million (1998: £10.1 million). As at 30 April 1999,
consolidated net assets were £33.0 million (1998: £31.2 million).

In  Scottish Highland's Interim Statement for the six months  to  30
April 1999 published on 25 June 1999 it was stated that:

'Market demand in Northern England and Scotland weakened at the  end
of  last year, but has recently shown encouraging signs of recovery.
Lower  interest rates are likely to stimulate consumer and  business
purchasing  as  the year progresses, and this is borne  out  by  our
current  trading  returns and forward bookings, both  of  which  are
showing an improving trend.




The  second  half  will  also benefit from  the  recent  development
capital  expenditure and initial trading from the bedroom  extension
at  Stirling  Highland and the new leisure club at Hellaby  Hall  is
most  encouraging.  The board therefore looks to  the  traditionally
busier second half with greater confidence and considers that  there
are  currently  good  prospects for the recent  trading  improvement
continuing into next year'.

6.  INFORMATION ON THE PARAMOUNT HOTELS GROUP
    
Paramount Hotels Investments is a newly incorporated company  and  a
wholly  owned subsidiary of Paramount Hotels. The board of directors
of  Paramount  Hotels  Investments comprises, Michael  Purtill,  Ian
Goulding  and Martin Bolland who are respectively managing director,
Finance director and a non-executive director of Paramount Hotels.

The  Alchemy Investment Plan currently controls 87.5 per  cent.  and
Michael  Purtill,  Ian Goulding and the other senior  management  of
Paramount  Hotels  currently  hold 12.5  per  cent.  of  the  issued
ordinary share capital of Paramount Hotels. In addition, the Alchemy
Investment  Plan holds £16.1 million in nominal amount of  9.75  per
cent.  secured  subordinated loan stock  in  Paramount  Holdings  (a
subsidiary  of  Paramount Hotels), issued at par. In June  1998  the
Alchemy  Investment  Plan  invested  £27.2  million  into  Paramount
Holdings,  which  in  conjunction with bank financing  was  used  to
finance  the  £77  million acquisition of Paramount Hotels  Limited,
which  owned  a  group  of  five hotels,  and  simultaneously  three
additional  hotels.  All  eight  hotels  are  four  and  five   star
provincial  UK  hotels. In March 1999 Paramount  Hotels  acquired  a
further hotel in Brighton.

Following  these transactions, the Paramount Hotels Group  now  owns
nine provincial UK hotels targeted at the UK national conference and
leisure markets. Its head office is in Leeds.

Paramount  Hotels  Investments has entered into a  credit  agreement
with NatWest, Barclays and DNIB (the 'Banks') pursuant to which  the
Banks have agreed to make available a bridge facility of £18,000,000
to  be  applied towards the acquisition of Scottish Highland  Shares
and  costs  associated  with the acquisition  of  Scottish  Highland
Shares  and  a  term loan facility of £43,000,000 to be  applied  in
connection  with  the acquisition of Scottish Highland  and  towards
associated costs and capital expenditure. The Credit Agreement  also
provides for a working capital facility of £1,000,000.

Paramount Hotels and Paramount Hotels Investments have also  entered
into  a subscription agreement with Alchemy Partners (Guernsey)  and
Michael Purtill whereby, conditional upon (i) the Offer becoming  or
being  unconditional in all respects and (ii) the passing of certain
resolutions by shareholders of Paramount Hotels, Michael Purtill has
subscribed  £49,999.82 for 25,773 ordinary  shares  of  1p  each  in
Paramount  Hotels and Alchemy Partners (Guernsey) has  subscribed  a
maximum  initial amount of £3,011,246.66 for 1,552,189 'A'  ordinary
shares  of 1p each in Paramount Hotels and £2,558,575 nominal amount
of  9.75 per cent. discounted subordinated secured loan stock issued
at  par  by Paramount Hotels Investments. The subscription agreement
also  provides for the existing ordinary shareholders  in  Paramount
Hotels  to  have the opportunity to subscribe pro rata for  ordinary
shares, failing which Alchemy Partners (Guernsey) will subscribe for
further  'A' ordinary shares in the amounts not taken up by ordinary
shareholders. Following the initial subscriptions (and  assuming  no
take  up  of  shares by existing ordinary shareholders of  Paramount
Hotels) the Alchemy Investment Plan will control 88.86 per cent. and
Michael  Purtill and the other senior management will control  11.14
per  cent.  in  aggregate of the issued ordinary  share  capital  of
Paramount Hotels.
    
7.  INFORMATION ON ALCHEMY PARTNERS
    
Alchemy  Partners is a venture capital investment advisory  business
established  on  20  January  1997 which  advises  Alchemy  Partners
(Guernsey).

Alchemy  Partners (Guernsey) is a registered Guernsey company  which
manages  the  Alchemy  Investment Plan and carries  out  investments
based  on  recommendations put forward by Alchemy Partners.  Alchemy
Partners  (Guernsey)  considers any recommendations  and  is  solely
responsible for the final decision to invest.

Investors  in  the  Alchemy Investment Plan  include  major  banking
institutions  and  pension  funds.   The  Alchemy  Investment   Plan
comprises  44  limited  partnerships, each  committed  to  investing
between  £600,000 and £30 million per annum totalling  in  aggregate
more   than  £240  million  per  annum.  In  addition,  it  includes
investments from the individual partners of Alchemy Partners.

The  Alchemy Investment Plan has invested or committed to invest  in
aggregate  approximately £358 million. In  March  1999  the  Alchemy
Investment  Plan  invested £25.42 million into  Mildghosts  Limited,
which  in  conjunction with bank financing was used to  finance  the
£43.9  million recommended offer for Goldsmiths Group PLC. In  April
1999  the  Alchemy  Investment  Plan  invested  £6.32  million  into
Novaside Limited, which in conjunction with bank financing was  used
to  finance the £22.38 million recommended offer for Avonside  Group
PLC.

No  investments made on behalf of the Alchemy Investment Plan  prior
to  the  Offer have any known connection with Scottish Highland  and
none  of the directors of Alchemy Partners (Guernsey) has any  prior
interest in Scottish Highland.
    
8.  ARRANGEMENTS WITH THE DIRECTORS OF SCOTTISH HIGHLAND
    
Alasdair Cameron, Paul Murray-Smith and Franco Galgani will continue
to  be  employed under their current service contracts with Scottish
Highland,  as  amended by letters of amendment dated 9 August  1999.
The  letters of amendment provide that, in the event that the  Offer
becomes unconditional Alasdair Cameron, Paul Murray-Smith and Franco
Galgani  will continue to be employed for a period of 30  days  from
the  Offer becoming or being declared unconditional in all respects.
At  the  end  of  this  period,  their  service  contracts  will  be
terminated  and,  they  will  receive payments  of  compensation  in
accordance with the terms of their respective service contracts.

Hamish Grossart, Tudor Davies and Brian Simmers will leave the board
of  Scottish Highland following the Offer becoming or being declared
unconditional  in  all  respects  and  will  receive   payments   of
compensation   in   accordance  with  their  respective   terms   of
engagement.

9.  REASONS FOR THE OFFER
    
The  board  of  Paramount  Hotels  Investments  believes  that  full
acceptance of the Offer will:

*   enable   Scottish   Highland  Shareholders  to   realise   their
    investment  in  Scottish  Highland  without  incurring   dealing
    charges  at  a  price  per  share  which  is  at  a  premium  of
    approximately  51 per cent. to the Closing Price of  a  Scottish
    Highland Share on 22 June 1999;
    
*   allow  the Scottish Highland Group hotels to be integrated  with
    the  Paramount Hotels Group and benefit from further  investment
    which will be provided for refurbishment and development of  the
    hotels; and
    
*   enable  the Scottish Highland Group hotels to benefit  from  the
    financial, management and marketing resources of being  part  of
    a larger hotel group.
    
10. MANAGEMENT AND EMPLOYEES
    
Subject  to  the  arrangements with the  Directors  referred  to  in
paragraph  8  above, the board of Paramount Hotels  Investments  has
given assurances to the board of Scottish Highland that the existing
employment rights, including pension rights, of the employees of the
Scottish Highland Group will be fully safeguarded.

11.  SCOTTISH HIGHLAND SHARE OPTION SCHEMES

The  Offer  extends  to  any  Scottish  Highland  Shares  which  are
unconditionally allotted or issued while the Offer remains open  for
acceptance  (or  before  such  earlier  time  as  Paramount   Hotels
Investments may, subject to the City Code, decide, not being earlier
than   the   date  on  which  the  Offer  becomes  or  is   declared
unconditional  as  to  acceptances or, if later,  8  September  1999
including  any so issued or allotted as a result of the exercise  of
options granted under the Scottish Highland Share Option Schemes.

Paramount  Hotels  Investments will make  appropriate  proposals  to
holders of options granted under the Scottish Highland Share  Option
Schemes  in  due course, to the extent that options  have  not  been
exercised once the Offer becomes or is declared unconditional in all
respects.
    
12. DE-LISTING
    
Upon  the  Offer  becoming or being declared  unconditional  in  all
respects,  Paramount Hotels Investments will apply for  cancellation
of  the listing on the Official List of the London Stock Exchange of
the  Scottish Highland Shares with effect from 20 business days from
such  date.   Paramount  Hotels Investments intends  to  re-register
Scottish Highland as a private company as soon as appropriate to  do
so under the relevant provisions of the Act.

13. THE DIRECTORS' RECOMMENDATION
    
The Directors, who have been so advised by Bell Lawrie, consider the
terms of the Offer to be fair and reasonable. In providing advice to
the  Directors,  Bell Lawrie has taken into account  the  commercial
assessment  of the Directors. Accordingly, the Directors unanimously
recommend all Scottish Highland Shareholders to accept the Offer, as
they  have  undertaken  to do in respect of holdings  amounting,  in
aggregate,  to  1,997,880  Scottish  Highland  Shares,  representing
approximately 6.84 per cent. of the existing issued share capital of
Scottish Highland.
    
14. PAYMENT OF BREAK FEE
    
On  1 July 1999, Scottish Highland entered into an agreement with  a
potential offeror (not being Paramount Hotels Investments)  pursuant
to  which  Scottish  Highland  agreed to  pay  £150,000  in  certain
circumstances  including the withdrawal by  the  board  of  Scottish
Highland of its intention to recommend an offer (on specified terms)
to be made by that other potential offeror prior to the announcement
of any such offer. This sum is now payable to that potential offeror
in   terms  of  the  agreement.   The  board  of  Scottish  Highland
considered the agreement with the other potential offeror was in the
best interests of the Scottish Highland Shareholders.

15. GENERAL
    
The formal Offer Document, setting out the details of the Offer, and
the Form of Acceptance will be despatched by Apax Partners on behalf
of Paramount Hotels Investments as soon as practicable.

The Offer will be on the terms and will be subject to the conditions
which  are  set  out  or referred to in Appendix  I  hereto  and  in
addition  those  terms which will be set out  in  the  formal  Offer
Document  and  the  Form of Acceptance in respect thereof  and  such
further  terms  as  may be required to comply  with  the  rules  and
regulations of the London Stock Exchange and the provisions  of  the
City Code.

Save  as  disclosed in this announcement, neither  Paramount  Hotels
Investments nor so far as Paramount Hotels Investments is aware  any
person acting in concert with Paramount Hotels
Investments owns or controls any Scottish Highland Shares or has any
option  to  purchase  any  Scottish Highland  Shares  or  holds  any
derivatives  referenced  to  Scottish Highland  Shares  or  has  any
arrangement  in  respect  of  any Scottish  Highland  Shares  (where
'arrangement' includes any indemnity or option arrangement  and  any
agreement  or understanding, formal or informal, of whatever  nature
which may be an inducement to deal or refrain from dealing).

The  availability of the Offer to persons not resident in the United
Kingdom may be affected by the laws of the relevant jurisdiction  in
which  they are resident. Persons who are not resident in the United
Kingdom  should inform themselves about, and observe, any applicable
requirements.

The Offer will not be made, directly or indirectly, in, into or from
the  United States, or by use of the United States mails, or by  any
means  or  instrumentality of United States  interstate  or  foreign
commerce,  or  any  facility of a United States national  securities
exchange nor is it being made, in, into or from Canada, Australia or
Japan.  Accordingly, copies of this document are not being and  must
not be mailed, forwarded, sent, transmitted or otherwise distributed
in,  into or from the United States, Canada, Australia or Japan  and
persons  receiving  this  document (including,  without  limitation,
custodians,  nominees  and trustees) must not  distribute,  forward,
mail,  transmit  or  send  it in, into or from  the  United  States,
Canada,  Australia  or  Japan.  All Scottish  Highland  Shareholders
(including,  without limitation, nominees, trustees  or  custodians)
who  would,  or  otherwise intend to, forward this document  to  any
jurisdiction  outside  the  UK or to overseas  persons  should  seek
appropriate advice before taking any action.

Appendix  II  contains  the  definitions  of  terms  used  in   this
announcement.

This  announcement  does not constitute an offer  or  invitation  to
acquire any securities.

Press enquires

For further information, please contact:

Alchemy Partners
Martin Bolland                          0171 240 9596

Paramount Hotels Group Limited
Michael Purtill                         0113 238 0033
Ian Goulding

Apax Partners
Richard Hughes                          0161 831 9133

Scottish Highland
Hamish Grossart                         0468 025209
Alasdair Cameron                        0141 331 6620

Bell Lawrie
Elizabeth Kennedy                       0141 221 7733


Apax  Partners,  which  is regulated by The Securities  and  Futures
Authority  Limited,  is acting for Paramount  Hotels  and  Paramount
Hotels Investments and no one else in connection with the Offer  and
will  not  be responsible to anyone other than Paramount Hotels  and
Paramount Hotels Investments for providing the protections  afforded
to  customers of Apax Partners nor for giving advice in relation  to
the Offer.

Bell  Lawrie,  which  is  regulated by The  Securities  and  Futures
Authority Limited, is acting for Scottish Highland and no  one  else
in  connection with the Offer and will not be responsible to  anyone
other  than Scottish Highland for providing the protections afforded
to  customers of Bell Lawrie or for giving advice in relation to the
Offer.                                                                        
                  

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Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

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