Business
Disposal of Investment Property Portfolio
Disposal of Investment Property Portfolio.
About this update from Conygar Investment Company Plc
[{"type":"text","content":"\n \nRNS Number : 6680X Conygar Investment Company PLC(The) 23 February 2017 \n\n \nFor immediate release\n23 February 2017\nTHE CONYGAR INVESTMENT COMPANY PLC\nProposed Disposal of the Investment Property Portfolio\nThe Conygar Investment Company PLC (\"Conygar\" or the \"Company\"), the property investment and development group, announces that it has entered into a conditional sale agreement for the disposal of its Investment Property Portfolio to Regional Commercial Midco Limited (a wholly owned subsidiary of Regional REIT Limited) (the \"Purchaser\") for a consideration which attributes a value of £129.8m to the Investment Property Portfolio and represents a modest premium to its valuation of £129.51m as at 30 September 2016 (the \"Disposal\"). \nThe consideration will be satisfied by the issue of 26,326,644 ordinary shares in Regional REIT at a price of 106.347 pence per share and the assumption by the Purchaser of both the bank debt of the Investment Property Portfolio and Conygar's obligation to fund the repayment of the ZDPs in January 2019 issued by Conygar ZDP plc (\"ZDP Co\"). The Consideration Shares will represent approximately 8.8% of the enlarged issued share capital of Regional REIT. The consideration will be adjusted following Completion to reflect the net asset value of the SPVs, which own the Investment Property Portfolio, on the Completion Date. The Consideration Shares will provide income which will substantially cover Conygar's ongoing overheads.\nThe Disposal constitutes a fundamental change of business for the purposes of the AIM Rules. Accordingly, Completion is conditional on, inter alia, the approval of Shareholders at a general meeting of the Company, notice of which will be posted to Shareholders shortly. The Disposal is also conditional upon ZDP Shareholders sanctioning the transfer of the ZDP Co Ordinary Shares to the Purchaser and the assumption by the Purchaser (whose obligations will be guaranteed by Regional REIT) of the obligations currently owed by the Company to ZDP Co under the terms of the Loan Agreement and the Contribution Agreement. Notice convening a separate class meeting of the ZDP Shareholders seeking the ZDP Class Consent will also be sent by ZDP Co to the ZDP Shareholders shortly.\nFurther details of the Disposal, including additional conditions to which it ...