SAS

AGM Information • Jun 27, 2024

National Storage Mechanism | Additional information

RNS Number : 0214U

Archimed SAS

27 June 2024

27 June 2024

THE FOLLOWING ANNOUNCEMENT IS BEING MADE PURSUANT TO THE REQUIREMENTS OF RULE 19.6(B) OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE").

ICHOR MANAGEMENT LIMITED

(a company controlled by funds managed by ARCHIMED SAS)

Rule 19.6(b) update to stated post-offer intentions with regard to Instem Limited (formerly Instem plc) ("Instem")

Ichor Management Limited ("ARCHIMED") announces that, following the completion of its recommended cash acquisition of Instem, which was effected by way of a scheme of arrangement under Part 26 of the Companies Act 2006, and which became effective on 20 November 2023, it has taken certain courses of action which differ from its statements of intention (the "Stated Intentions") made pursuant to Rules 2.7(c)(viii) and 24.2 of the Code which were set out in its announcement of 30 August 2023 and the scheme document published on 25 September 2023.

In the Stated Intentions, ARCHIMED referred to, among other things, possible headcount reductions in relation to a limited number of public company-related functions that may be reduced in scope or become unnecessary.  In addition, ARCHIMED stated that it had no plans to change the locations of business or the headquarters of Instem beyond any ordinary course changes planned by the management of Instem.

Instem faced challenging trading conditions toward the end of 2023. On October 5, 2023, Instem noted a deteriorating market outlook, with expected FY23 revenue growth and operating performance impacted by market softening, continuing into FY24.

In response to market conditions deteriorating even more than anticipated, Instem implemented an internal reorganisation to establish a unified product department, a new delivery department, and a new technology department, along with hiring a CTO.  In addition, Instem took the decision to withdraw from Switzerland due to high labour costs and to close its office there. Finally, a review conducted by external consultants led to a decision being taken by Instem to discontinue certain products and optimise its product portfolio. Proposals to implement the steps described herein were developed during February 2024, presented to the Board of Instem on 6 March 2024, and communicated to employees in April 2024. During April to June 2024, Instem undertook necessary consultation processes involving the affected employees and employee representative bodies.  In total, the proposals resulted in an approximately 10% reduction in the Instem workforce.

Enquiries:

Vincent Guillaumot                                                                            Tel: +33 4 81 11 35 33

Brian Sheridan

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