GUS plc has set out details of its plans to demerge its remaining 65% stake in British luxury goods group Burberry Group plc by way of a dividend in specie. Burberry will soon post a circular to shareholders setting out further details of the arrangements with respect to the proposed demerger.

Burberry will propose a series of resolutions to its shareholders, which the independent directors of Burberry believe would, if passed, allow the demerger to be implemented in a more orderly way, to the benefit of the group and its shareholders. Matters to be considered include approval of a demerger agreement between Burberry and GUS relating to such issues such as pension liabilities, taxation and transaction expenses. Accordingly, the demerger is subject to shareholder approval from both Burberry shareholders and GUS shareholders.

Burberry will convene an extraordinary general meeting of shareholders on December 12, 2005 to consider the resolutions.