Business
Capitalisation Issue
Capitalisation Issue.
About this update from R.e.a. Holdings Plc
[{"type":"text","content":"\n \nRNS Number : 9478M R.E.A.Hldgs PLC 24 August 2011 \n \n\nR.E.A. Holdings plc\nProposals for capitalisation issue \nSummary\nThe company has today published its half yearly report for the six months ended 30 June 2011 in which the directors notified their intention to propose a capitalisation issue of new preference shares to ordinary shareholders. The company now announces that it is despatching a circular (the \"circular\") to shareholders providing detailed information concerning these proposals.\nPursuant to the capitalisation issue, it is proposed that ordinary shareholders will be allotted new preference shares on the basis of three new preference shares for every 50 ordinary shares held at 6.00 pm on 28 September 2011. The new preferences shares will be issued credited as fully paid by way of capitalisation of share premium account. \nTo avoid allottees of 1,000 or fewer new preference shares being forced to choose between either retaining what they may regard as relatively small allotments or incurring disproportionately high selling costs in realising their allotment, it is further proposed that the company will (except to the extent that allottees otherwise elect) aggregate all new preference shares comprised in allotments of 1,000 or fewer new preference shares and sell the resultant aggregated holding on behalf of the relative allottees (subject to achievement of a minimum gross price of 100p per new preference share as specified below).\nImplementation of the capitalisation issue and the sale arrangement requires shareholder approval. Accordingly, a notice is set out at the end of the circular convening an extraordinary general meeting of the company, to be held on 28 September 2011, for the purposes of considering and, if thought fit, passing the resolutions necessary to implement the proposals.\nBackground to the capitalisation issue\nAs shareholders will be aware, the group has ambitious plans for the further development of its agricultural activities. This will entail major capital expenditure on extension planting and on the new buildings and plant needed to support that planting (including expenditure on the new oil mill and two methane conversion plants that are currently under construction). The need to fund this expenditure will constrain the rates at which t...