Business
EGM Statement
EGM Statement.
About this update from Beacon Energy Plc
[{"type":"text","content":"\n RNS Number : 7853X Clean Energy Brazil PLC 21 August 2009 \n \n21 August 2009\n\nClean Energy Brazil PLC\n('CEB' or the 'Company')\n\nProposed dividend and EGM\n\nProposed dividend\nClean Energy Brazil PLC, an investment company focused on Brazil's sugar cane/ethanol industry, announces that the Board has decided to return part of the Company's surplus cash resources to Shareholders via an interim dividend of US$12.5 million in aggregate or 8.5 US cents per Ordinary Share (equivalent to 5.15p per Ordinary Share at an exchange rate of US$1.65/£1). In order to make this distribution, an EGM is being convened to propose that the current share premium account of approximately £50.0 million (representing US$82.58 million at an exchange rate of US$1.65/£1) be cancelled and re-classified as a distributable reserve. The Company currently has cash reserves of US$25.1 million (including US$5.8 million held in an escrow account); this would be reduced to US$12.6 million by the payment of the proposed interim dividend.\n\nBackground and market\nThe Company currently has minority investments in two operational sugar and ethanol production facilities; Usaciga and Unialco MS, and two wholly owned subsidiaries with greenfield cane plantations; Pantanal and Agua Limpa. The Board has decided that, for the time being, no further investment of the Company's free cash reserves will be made in any of its existing investments. In light of this decision, the Board has decided that it is appropriate to distribute part of the Company's cash resources to Shareholders and accordingly is proposing to pay the interim dividend referred to above.\n\nThe Board is currently seeking to maximise the value of the Company's remaining investments for the benefit of its Shareholders and further announcements will be made as appropriate. In addition, in light of the reduced scope of the Company's expansion plans, the Board has decided to implement a significant reduction in the Company's ongoing operational costs. Further information on these cost cutting measures will be announced in due course.\n\nThe Board has noted and welcomes the recent strength in sugar prices however it should be borne in mi...