Arricano Real Estate PLC Related party transaction (1083N)
July 23 2014 - 6:18AM
UK Regulatory
TIDMARO
RNS Number : 1083N
Arricano Real Estate PLC
23 July 2014
23 July 2014
Arricano Real Estate plc
("Arricano" or the "Company" or, together with its subsidiaries,
the "Group")
Related Party Transactions
Arricano (AIM:ARO), a leading retail real estate developer and
operator in Ukraine, has agreed the commercial terms of two
separate transactions (the "Transactions"). The first transaction
is between Arricano and Bytenem Co Limited ("Bytenem"). The second
transaction is between LLC Mezokred Holding ("Mezokred") and
Gingerfin Holdings Limited ("Gingerfin"). Mezokred is a wholly
owned subsidiary of Gelida Holding Limited which is a wholly owned
subsidiary of Arricano. The details of the Transactions are set out
below.
Loan agreement with Bytenem
The Company has agreed an extension to the commercial terms of
the existing US$13,051,275 loan facility provided by Bytenem to the
Company on 29 May 2014 (the "Original Facility").
Bytenem has agreed to provide the Company with an additional
US$3,000,000 loan (the "New Facility") on the same terms as the
Original Facility by way of an amendment to the Original Facility
agreement. The purpose of the New Facility is to enhance the
Group's working capital resources.
The key terms of the New Facility are set out below:
-- Loan amount: US$3,000,000
-- The loan is repayable on 14 March 2015 or earlier if agreed by both parties;
-- The loan carries an annual interest rate of 12%; and
-- The loan is unsecured.
Loan agreement with Gingerfin
Gingerfin and Mezokred have entered into a loan agreement
whereunder Gingerfin has agreed to provide Mezokred with a loan of
US$7,000,000. This loan facility is to be used by Mezokred for the
financing of contracted design works in relation to the Petrovka
development project.
The key terms of the loan are set out below:
-- Loan amount: US$7,000,000;
-- The loan is repayable in instalments or in one payment by 31 December 2015;
-- The loan carries an annual interest rate of 10%; and
-- Interest is charged on a monthly basis.
Related Party Transactions
Both Bytenem and Gingerfin are ultimately controlled by Hillar
Teder who as well as being a director of the Company is also the
Company's majority shareholder and, therefore, is a "Related Party"
under the AIM Rules. Consequently, each of the Transactions are
considered to be a Related Party Transaction under the AIM Rule 13.
The independent directors of Arricano (Rupert Cottrell, Philip
Scales and Michael Zampelas) consider, having consulted with Smith
& Williamson Corporate Finance Limited in its capacity as the
Company's nominated adviser, that the terms of the Transactions,
individually and in aggregate, are fair and reasonable insofar as
the shareholders of Arricano are concerned.
Commenting on these transactions, Acting Chief Executive Officer
Yarema Kovaliv, said: "Operating in our current environment it is a
significant commercial advantage for Arricano to have the long term
financial support of our major shareholders, enabling us to
continue to invest in the future of the business. Critically, we
are as a result able to maintain our programme of the new
developments where others are less able to do so, placing us in a
strong position going forwards."
For further information please contact:
Arricano Real Estate plc Tel: +380 44 569 6708
Yarema Kovaliv, Acting CEO
Nominated Adviser and Joint Broker
Smith & Williamson Corporate Finance Limited Tel: +44 (0)20 7131 4000
Azhic Basirov
Joint Broker
Whitman Howard Limited Tel: +44 (0)20 7087 4555
Ranald McGregor-Smith
Financial PR
Novella Tel: +44 (0)20 3151 7008
Tim Robertson / Ben Heath
This information is provided by RNS
The company news service from the London Stock Exchange
END
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