Business
Proposed capitalisation issue
Proposed capitalisation issue.
About this update from R.e.a. Holdings Plc
[{"type":"text","content":"\n R.E.A.Hldgs PLC\n05 September 2007\n\n\nR.E.A. Holdings plc - Proposed capitalisation issue\n===================================================\n\nSummary\n-------\nThe company announced earlier today as part of the announcement of its interim\nreport for the six months ended 30 June 2007 that it proposed to make a\ncapitalisation issue to ordinary shareholders. The company now further announces\nthat it is today despatching a circular (the 'circular') to shareholders\nproviding information regarding the proposed issue.\n\nPursuant to the issue, it is proposed that ordinary shareholders will be\nallotted new preference shares on the basis of one new preference share for\nevery 30 ordinary shares held at the close of business on 1 October 2007. The\nnew preferences shares will be issued credited as fully paid by way of\ncapitalisation of share premium account.\n\nTo avoid an allottee of 1,000 or fewer new preference shares being forced either\nto retain what that allottee may regard as a relatively small allotment or to\nincur disproportionately high selling costs in realising the allotment, it is\nfurther proposed that the company will (except to the extent that allottees\notherwise elect) aggregate all new preference shares comprised in allotments of\n1,000 or fewer new preference shares and sell the resultant aggregated holding\non behalf of the relative allottees (subject to achievement of a minimum gross\nprice of 100p per share as specified below).\n\nSince implementation of the proposals will require certain shareholder\napprovals, a notice is set out at the end of the circular convening an\nextraordinary general meeting of the company, to be held on 2 October 2007, for\nthe purposes of considering and, if thought fit, passing the resolutions\nnecessary to implement the proposals.\n\nBackground\n----------\nAs shareholders will be aware, the group's business consists of oil palm\noperations in East Kalimantan, a province of Indonesia. The operations have been\ndeveloped entirely since the early 1990's and their development has involved\nmajor investment by the group. Financing this investment has posed significant\nchallenges for the group and, for several years, the directors felt constrained\nto recommend that no dividends be paid on the ordinary shares.\n\nIn 2006, with the 13,000 hectares of oil palms planted over ...