Business
Proposed reverse takeover and related party
Proposed reverse takeover and related party.
About this update from Palace Capital Plc
[{"type":"text","content":"\n \nRNS Number : 9371M Palace Capital PLC 02 September 2013 \n \n\nPalace Capital plc ( \"Palace Capital\" or \"Company\")\n Potential reverse takeover transaction\nand\nrelated party transactions\n \nIn line with its stated strategy, and as referred to in the preliminary announcement dated 5 July 2013, the Board of Palace Capital can now confirm that it is at an advanced stage of negotiations to acquire a property company owned by Quintain Estates & Development PLC at an agreed purchase price of approximately £40 million. To finance the acquisition, Palace Capital intends to raise approximately £23.5 million of new equity and it has also received credit committee approval from a UK lender for a facility of £20 million.\nDue to the size of the proposed transaction relative to the Company, it will be treated as a reverse takeover and, in order for the proposed transaction to proceed, it will require shareholder consent and for the enlarged issued ordinary share capital of the Company to be admitted to AIM. The Company's ordinary shares have been suspended from trading on AIM pending the publication of an admission document.\nIn order to help fund the costs of the proposed transaction, on 27 June 2013 and 2 August 2013, Stanley Davis, Non-Executive Chairman of Palace Capital, loaned the Company £25,000 and £100,000 respectively (the \"Loans\"). The Loans were made on the same basis as previous loans made by him to the Company in that they are non-interest bearing and they have no defined term for repayment. The Loans do however constitute related party transactions under the AIM Rules for Companies and the directors of the Company consider, having consulted Allenby Capital, the Company's Nominated Adviser, that the Loans are fair and reasonable insofar as the Company's shareholders are concerned.\nShareholders will be kept informed of developments in due course.\n \n-ends-\n \nFor further information contact:\n \n\n\n\n\nPalace Capital Plc\n\n\nTel. +44 (0)20 7722 7603\n\n\n\n\nNeil Sinclair, Managing Director\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nAllenby Capital Limited - NOMAD/Joint Broker\n\n\nTel. +44 (0) 20 3328 5656\n\n\n\n\nNick Naylor, Chief Executive\n\n\n\n\n\n\n\nMark Connelly, Corporate Finance\n\n\n\n\n\n\n\n \nArden Partners plc - Lead Broker\nand Bookrunner\nChris Har...