Business
Proposed equity issues
Proposed equity issues.
About this update from R.e.a. Holdings Plc
[{"type":"text","content":"\n R.E.A.Hldgs PLC\n31 January 2006\n\n\nR.E.A. Holdings plc ('REA')\nProposed equity issues\n\nAs previously announced, on 23 January 2006, REA and certain of its subsidiaries\nand directors entered into an agreement (the 'settlement agreement') with Mr M E\nZukerman and connected parties for the settlement of the outstanding actual and\nthreatened litigation claims between them and for the acquisition by REA of all\nof the issued shares of its subsidiary, Makassar Investments Limited, not\nalready owned by it.\n\nREA has concluded that it should seek additional equity capital. To this end,\ntwo transactions are in contemplation: first, a limited placing of new ordinary\nshares and, second, an open offer of new ordinary shares combined with a further\nplacing of such shares.\n\nPursuant to the first of these transactions, it is proposed to place with a\nlimited number of institutional investors, subject to certain conditions, up to\n1,372,000 new ordinary shares (the 'first transaction shares') at a placing\nprice of 260p per share so as to raise some £3.6 million (before expenses). The\nplacing of the first transaction shares would be conditional upon completion of\nthe settlement agreement and upon admission of the first transaction shares to\nthe Official List of the Financial Services Authority and to trading on the\nLondon Stock Exchange's market for listed securities. The first transaction\nshares would be allotted under authorities granted to the directors of REA by\nresolution of REA shareholders passed at the annual general meeting of REA held\non 15 June 2005. The first transaction shares would rank pari passu with, and\nform a single issue with, the ordinary shares of REA that are already in issue.\n\nThe principal purpose of this first transaction would be to raise a sterling\namount approximately equivalent to $6 million so as to replace the group cash\nresources expended in funding the $6 million cash payment to be made by a\nsubsidiary of REA pursuant to the settlement agreement.\n\nPursuant to the second of the transactions referred to above, it is proposed\nthat between 2.1 million and 2.6 million further new ordinary shares (the\n'second transaction shares') should be issued for cash at a price of 260p per\nshare so as to raise between £5.5 million and £6.8 million before expenses. It\nis envisaged that the...