11th September 2009
Company Statement on MG Rover report
St Modwen Properties PLC
Re. MG Rover Report and Longbridge site acquisition
The Board of St Modwen Properties PLC ("St Modwen") notes that St Modwen is referred to in the Report by Government appointed Inspectors into the affairs of MG Rover and related companies, in connection with its acquisition of the Longbridge site.
Specifically, and subsequent to the signing of the property development agreement with MG Rover Group Ltd in July 2001, St. Modwen paid a fee totalling £100,000 to a company controlled by Mr Brian Parker, a former director and agent of MG Rover. This payment was made on behalf of and at the request of MG Rover. It was fully accounted for, and clearly recorded in documents supplied to MG Rover.
As soon as it became clear that questions were being raised about this matter during the MG Rover inquiry, the Board of St. Modwen appointed two senior QCs to carry out a totally independent and thorough investigation.
The QCs reached a judicial conclusion that the payment was made not only with the informed consent of MG Rover but also at MG Rover's request. They also concluded that no improper payments were made.
Consequently, and with great respect to the inquiry, the Board of St. Modwen does not share the Inspectors' concerns regarding this payment and is firmly of the opinion that no impropriety occurred.
College Hill Tel: +44 20 7457 2020
Alex Sandberg 07831 851844
Gareth David 07774 444162
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