Genus pension fund partner to withdraw

Animal genetics company Genus issued an announcement to the market on Thursday morning, noting a release from National Milk Records on the NEX Exchange Growth Market.

The FTSE 250 firm said the statement referred to a circular to NMR's shareholders regarding its proposed withdrawal from the Milk Pension Fund, under a flexible apportionment arrangement between NMR, Genus and the trustees of the MPF.

Genus said the MPF was a multi-employer scheme where it had joint and several liability for the total liabilities of the scheme.

“Subject to approval by NMR's shareholders, NMR's withdrawal from the pension fund will become effective on 23 June 2017,” Genus confirmed.

“In return for the right to withdraw from the MPF, NMR will, among other matters, make a one-off, lump sum cash payment of £10.1m to the MPF, equivalent to the undiscounted value of all NMR's future payments under the existing MPF recovery plan which extends to March 2026.”

Genus confirmed NMR would also make a payment to Genus of £4.7m, of which £1.4m will be satisfied by the issue of NMR shares.