Uniq - Proposed solution for Pension Scheme

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Slaughter and May is advising Uniq plc, the chilled convenience food group, on a solution with the Trustee of the Uniq Pension Scheme ("Trustee") for the £436 million legacy pension deficit.

On 20 October 2010 Uniq announced that, subject to approval from both shareholders and the Pensions Regulator, they would implement a deficit for equity swap together with a re-leveraging of the company to fund a partial share buy-back from the pension fund. The main principles for implementing the deficit for equity swap have been agreed with the Trustees and discussed with the Pensions Regulator who has been closely involved throughout.

The proposals involve an effective transfer of 90% of the equity of the company to the Trustee in exchange for the Pension Scheme giving up its claim on the company. The company has also agreed to offer the Pension Scheme a put option to sell a proportion of its shares back to the company, at a pre-agreed price per share for up to £25 million to £30 million. This will be funded through disposals of the businesses of Uniq on the Continent.

Pensions: Sandeep Maudgil (partner), Eleanor Hart (associate); Financing: George Seligman (partner), Frances Churchard (associate); Corporate: Martin Whelton (partner), Holly Sage (associate); Tax: Tony Beare (partner), Owen Williams (associate)