Business
Supplementary prospectus
Supplementary prospectus.
About this update from R.e.a. Holdings Plc
[{"type":"text","content":"\n R.E.A.Hldgs PLC\n15 February 2006\n\n\nR.E.A. Holdings plc ('REA')\n\nSupplementary Prospectus and Proposed Reduction of Capital\n\n\nREA announces that it has published a supplementary prospectus (the\n'supplementary prospectus') supplemental to the base prospectus (the 'base\nprospectus') published on 17 August 2005 relating to an issue by REA of up to\n$30,000,000 of 7.5 per cent dollar notes 2012/14 ('dollar notes').\n\nCurrently, $4,972,281 nominal of dollar notes are in issue. As announced on 24\nJanuary 2006, REA has agreed to issue a further $19,000,000 nominal of dollar\nnotes pursuant to the terms of an agreement (the 'settlement agreement') dated\n23 January 2006 between REA and certain of its directors and subsidiaries of the\none part and Mr M E Zukerman and connected parties of the other part (the 'MEZ\ngroup') as consideration for the acquisition by REA of all of the shares in\nREA's subsidiary, Makassar Investments Limited, owned by the members of the MEZ\ngroup.\n\nThe supplementary prospectus contains information relating to certain\nsignificant new factors relating to the information provided in the base\nprospectus which have arisen since the date of publication of the base\nprospectus. Details of such factors have already been announced in press\nannouncements issued by REA save as regards the fact that the directors of REA\nhave concluded that they should seek shareholder approval for a reduction in the\ncapital of REA of £6 million in aggregate involving the cancellation of the\nentire balance of £3,239,666 standing to the credit of REA's capital redemption\nreserve and a reduction of £2,760,334 in the amount standing to the credit of\nREA's share premium account.\n\nThis reduction of capital was envisaged in the base prospectus, and the trust\ndeed constituting the dollar notes contains provisions pursuant to which the\ntrustee for the holders of the dollar notes has irrevocably consented, on behalf\nof itself and holders of the dollar notes, to a reduction in the capital of REA\nof the magnitude that is proposed. However, at the time that the base prospectus\nwas published, the directors had no immediate plans to propose the reduction of\ncapital. That has now changed.\n\nThe REA group's profits are currently derived almost entirely from the oil palm\noperations in Indonesia of REA's subsidiary, PT...