Business
Acquisition of Assets from Aardvark
Acquisition of Assets from Aardvark.
About this update from Hargreaves Services Plc
[{"type":"text","content":"\n \nRNS Number : 8376E Hargreaves Services PLC 16 May 2013 \n \n\nFor immediate release 16 May 2013\n \n \nHARGREAVES SERVICES PLC\n(\"Hargreaves\" or \"the Company\")\n \nAcquisition of Assets from Aardvark (TMC) Limited (in creditors' voluntary liquidation)\nHargreaves Services plc (AIM: HSP), the UK's leading supplier of solid fuels and bulk material logistics, announces that, following the appointment on 15 May 2013 of KPMG as liquidators of Aardvark (TMC) Limited (\"Aardvark\"), Hargreaves has acquired a number of assets related to the business of Aardvark for £10.4m. Aardvark is the principal operating subsidiary of the ATH Group. The acquisition is being funded from the proceeds of the fundraising announced on 17 April 2013 to expand the Company's portfolio of surface mining assets.\n \nBackground\n \nOn 1 March 2013, Hargreaves announced that, following ATH Resources PLC (\"ATH\") entering administration, Hargreaves' subsidiary, Hargreaves Surface Mining Limited, had purchased secured debt (the \"Debt\") owed by Aardvark and certain other companies within the ATH Group. The principal amount of the Debt at the time of acquiring the debt was £12.5m and was secured over the assets of Aardvark and other ATH Group companies. The Debt was purchased from BECAP Capital Coal Limited (\"BECAP\")for a cash sum of £5.0m.\n \nHargreaves purchased the Debt after extensive discussions with many of the key stakeholders of ATH Group, including management, landowners, local authorities and the Scottish Government.\n \nFollowing the acquisition of the Debt, Hargreaves has supported the project to restructure the Aardvark business in conjunction with management and major stakeholders. The objectives of the restructuring were two-fold. The f...