Business
Proposed Disposal of interest in LPD and GM Notice
Proposed Disposal of interest in LPD and GM Notice.
About this update from Capital Metals Plc
[{"type":"text","content":"\n \n \n RNS Number : 2019N\n Equatorial Palm Oil plc\n 18 May 2020\n \n \n \n \n 18 May 2020 \n \n \n \n \n \n EQUATORIAL PALM OIL plc\n \n \n (\"EPO\" or the \"Company\")\n \n \n \n \n \n Proposed Disposal of 50% interest in LPD and Notice of General Meeting\n \n \n \n \n \n \n \n \n Equatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa, announces the proposed disposal, by its wholly owned subsidiary Equatorial Biofuels (Guernsey) Limited (\"Equatorial Biofuels\"), of the Company's 50 per cent. interest in Liberian Palm Developments Limited (\"LPD\") to Kuala Lumpur Kepong Berhad (\"KLK\") for nominal consideration (the \"Disposal\").\n \n \n \n \n \n Overview of the Proposed Disposal \n \n \n ·\n Under the terms of the SPA, on completion of the proposed Disposal:\n \n \n o \n Equatorial Biofuels will transfer its 50 per cent. equity interest in LPD to KLK Agro Plantations Pte Ltd (\"\n \n KLK Agro Plantations\n \n \"), a wholly owned subsidiary of KLK (\"\n \n Sale Shares\n \n \")\n \n \n o \n EPO will transfer its circa US$6.2m of outstanding debt owed to EPO by LPD (\"\n \n Loan Novation\n \n \"), which ranks behind LPD's outstanding loans with KLK of circa US$131m, to KLK Agro Plantations\n \n \n o \n The consideration for the transfer of the Sale Shares and Loan Novation shall be £1\n \n \n ·\n The proposed Disposal constitutes a fundamental change of business of the Company under Rule 15 of the AIM Rules and accordingly requires shareholder approval. If approved, the Company would become an AIM Rule 15 cash shell on completion.\n \n \n ·\n The proposed Disposal will eliminate any future costs to the Company associated with its interest in LPD and enable the Board to seek to acquire another asset which the Board believes is more likely to generate value for Shareholders in the near to medium term. \n \n \n ·\n On completion, the Company expects to have available cash resources of approximately £800,000, which the Board will utilise carefully in seeking to identify and execute a potential acquisition. \n \n \n \n \n \n Further information regarding the proposed Disposal can be found below and in a Circular which will shortly be posted to shareholders and made available on the Comp...