Braemar Shipping Services PLC Braemar Naves Payment Rescheduling (6507A)
June 03 2021 - 2:01AM
UK Regulatory
TIDMBMS
RNS Number : 6507A
Braemar Shipping Services PLC
03 June 2021
BRAEMAR SHIPPING SERVICES PLC
("Braemar", the "Company" or the "Group")
3 June 2021
Braemar Naves Payment Rescheduling
and
Related Party Transaction
Braemar, a leading international Shipbroker and provider of
expert advice in shipping investment, chartering and risk
management, is pleased to announce that it has agreed a
rescheduling of deferred consideration amounts owed by Braemar in
relation to its acquisition of Braemar Naves in 2017, alongside the
integration of its Financial Division, which was created by the
acquisition, into its Shipbroking Division (the
"Restructuring").
The integration of the Financial Division into the Shipbroking
Division is part of Braemar's strategy to streamline the Group and
focus on its core Shipbroking business. Braemar believes that the
integration will further improve collaboration and enhance client
service.
The Restructuring will see over EUR2.9m, which was previously
due for repayment before the end of December 2022, being deferred
to be paid no earlier than September 2025. In addition, a further
amount of approximately EUR0.75m will be satisfied by the issue of
new ordinary shares in the capital of the Company in three tranches
between September 2021 and December 2022. The recipients of these
shares have agreed to "lock-up" restrictions in relation to the new
shares.
As a result of the Restructuring, the earliest redemption dates
of the outstanding balance of the deferred consideration, including
those amounts to be satisfied by the new shares, will be as follows
(with the total of these amounts not being affected by the
Restructuring):
Financial year ending Amount / GBPm Amount / EURm
Feb-22 3.1* 3.5*
-------------- --------------
Feb-23 1.4** 1.6**
-------------- --------------
Feb-24 0.6 0.7
-------------- --------------
Feb-25 0.6 0.7
-------------- --------------
Feb-26 2.5 2.9
-------------- --------------
* Including approximately EUR0.6m / GBP0.5m to be satisfied by
the issue of new shares
** Including approximately EUR0.1m / GBP0.1m to be satisfied by
the issue of new shares
As part of the Restructuring, Braemar has also agreed to
increase the interest rate on certain of the consideration loan
notes (to the extent still outstanding) to five per cent. per annum
from September 2025.
The Restructuring has been agreed with two of Braemar Naves'
Managing Directors, Axel Siepmann and Mark Kuchenbecker, and their
connected parties (Kesone Verwaltungsgesellschaft mbH, Siepmann
& Cie. Verwaltungs GmbH, CFC Beteiligungsgesellschaft mbH and
Risorto GmbH). Axel Siepmann and Mark Kuchenbecker are related
parties of the Company pursuant to Chapter 11 of the Listing Rules.
The Restructuring is a smaller related party transaction pursuant
to LR11.1.10R, and this announcement therefore includes the details
required by Listing Rule 11.1.10R(2)(c).
James Gundy, Group Chief Executive Officer of Braemar, said:
"I am delighted to complete another step in the rationalisation
of the Braemar Group and the delivery of our new growth strategy
centred on Shipbroking. The Restructuring will enable us to improve
client service by developing and enhancing our specialist expertise
in shipping investment and corporate finance, and will also help to
further strengthen our balance sheet, positioning the Group even
more strongly for future growth."
For further information, contact:
Braemar Shipping Services
James Gundy, Group Chief Executive Tel +44 (0) 20 3142 4100
Officer
Nick Stone, Group Chief Operating
Officer & Finance Director
Peter Mason, Company Secretary
finnCap
Matt Goode / James Thompson Tel +44 (0) 20 7220 0500
Buchanan
Charles Ryland / Victoria Hayns / Tel +44 (0) 20 7466 5000
Stephanie Watson / Matilda Abraham
Notes to Editors:
About Braemar Shipping Services Plc
Braemar is a leading international Shipbroker and provider of
expert advice in shipping investment, chartering and risk
management. Braemar employs approximately 520 people in 30 offices
worldwide across its Shipbroking, Financial and Logistics
divisions.
Braemar joined the Official List of the London Stock Exchange in
November 1997 and trades under the symbol BMS.
For more information, including our investor presentation, visit
www.braemar.com
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