Business
Proposed Related Party Transaction with Peel
Proposed Related Party Transaction with Peel.
About this update from Harworth Group Plc
[{"type":"text","content":"\n \nRNS Number : 3523I UK Coal PLC 14 June 2011 \n \n\nThe release, publication, transmission or distribution of this announcement in, into or from jurisdictions other than the United Kingdom may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published, transmitted or distributed should inform themselves about and observe such restrictions. Any failure to comply with the restrictions may constitute a violation of the securities laws of any such jurisdiction.\n \n14 June 2011\n \nUK COAL PLC\n \nProposed Related Party Transaction with Peel\n \n \nUK Coal plc (\"UK Coal\" or the \"Group\") announces today a proposed Joint Venture with members of the Peel Group, UK Coal's largest beneficial shareholder, to develop waste facilities on 11 properties within the Group's Harworth Estate portfolio.\n \nOverview of the proposed Joint Venture:\n \n· 11 sites identified within UK Coal's portfolio which the Group has identified as being appropriate for waste related activities;\n· Sites are typically located on industrial sites which UK Coal has historically been unable to successfully develop for alternative commercial uses;\n· A new SPV will be incorporated for each site which will be owned equally by Peel and a member of the Group;\n· Each SPV's operations will be funded by entities within the Peel Group;\n· A Call Option (which is specific to each site) is exercisable by each SPV upon the receipt of planning permission to build waste related infrastructure;\n· Each SPV will pay a member of the Group a fee of £10,000 upon entering into the Call Option with a further £10,000 payable on the first anniversary thereof;\n· Proceeds received by the members of the Group are intended to be used to contribute towards the Group's working capital;\n· In the event of an exercise of the Call Option by the SPV, the SPV will pay a member of the Group a pre-agreed base value for each site using funds provided by entities within the Peel Group; and\n· The aggregate base value for all 11 sites is equal to £14.7 million.\n \nA Circular cont...