PMHL Prosperity

 

TIDMPMHL 
 
RNS Number : 4775S 
Prosperity Minerals Holdings Ltd 
10 September 2010 
 

10 September 2010 
 
                      Prosperity Minerals Holdings Limited 
 
                        ("Prosperity" or "the Company") 
 
                          Cancellation of Share Options 
 
 
Prosperity Minerals Holdings Limited (AIM: PMHL.L) is an iron ore trading 
business serving the People's Republic of China and holder of investments in 
entities involved in the manufacture and sale of cement and clinker and 
specialty real estate development properties in the same market. 
 
Prosperity announces that on 9 September 2010 it entered into an agreement with 
certain Directors and employees of the Company (the "Optionholders") to cancel 
options over an aggregate of 2,680,000 ordinary shares of 1p each ("Ordinary 
Shares"), which were granted to the Optionholders on 9 October 2007 under the 
Company's share option scheme (the "Options"). The Options were granted for nil 
cash consideration and are currently exercisable at 62p per Ordinary Share. The 
aggregate consideration paid by the Company to the Optionholders for the 
cancellation of the Options is GBP2,095,760. The consideration reflects a 5% 
discount to the 5 day average closing price of the Ordinary Shares on 8 
September 2010 after deducting the exercise price of 62p per Ordinary Share. 
 
 
+------------------------+----------------------------------------+ 
| Optionholder           | Number of Options cancelled            | 
|                        |                                        | 
+------------------------+----------------------------------------+ 
| Patrick Siu Ming Li    | 1,500,000                              | 
| (Director)             |                                        | 
+------------------------+----------------------------------------+ 
| Sandy Chun-Kwan Chim   | 250,000                                | 
| (Director)             |                                        | 
+------------------------+----------------------------------------+ 
| So Yuen Yee            | 500,000                                | 
| Hon Ching Fong         | 200,000                                | 
| Kenneth Yeung          | 160,000                                | 
| Tsang Chui Na          | 70,000                                 | 
|                        |                                        | 
+------------------------+----------------------------------------+ 
|                        |                                        | 
+------------------------+----------------------------------------+ 
| Total                  | 2,680,000                              | 
+------------------------+----------------------------------------+ 
 
Following cancellation of the Options, the Company will have 1,500,000 options 
over Ordinary Shares currently exercisable at 62p remaining in issue and 
5,790,000 options over Ordinary Shares exercisable from 28 October 2011 at 70p 
remaining in issue. 
 
Following the disposal of the cement business and the acquisition of various 
properties, the unaudited net asset value per Ordinary Share is approximately 
GBP2.48 as at 31 July 2010. 
 
The Company has been repurchasing its Ordinary Shares from the market pursuant 
to the general mandate granted by shareholders. 
 
If the Options were to be exercised and sold on the market, it would be more 
difficult for the Ordinary Share price to maintain it's upwards momentum and to 
close the discount between the market price per Ordinary Share and the net asset 
value (as above). The Executive Directors therefore believe that it is in the 
interest of the Company to enter into the Cancellation Agreements with the 
Optionholders to cancel those Options and, thus, avoid a possible stock 
over-hang had those Options been exercised. 
 
As the Optionholders are Directors and employees of the Company, these 
transactions constitute related party transactions. However, as these related 
party transactions, when aggregated, do not exceed 5% of any of the class tests 
of the AIM Rules, the reporting requirements of AIM Rule 13 do not apply. The 
transactions also constitute a connected transaction for the Company's majority 
shareholder, Prosperity International Holdings (H.K.) Limited ("PIHL"), under 
the Hong Kong Listing Rules (the "HK Listing Rules").  Therefore, PIHL is 
required by the HK Listing Rules to make an announcement to its shareholders of 
the transactions. A copy of PIHL's announcement can be found on PIHL's website 
(www.pihl-hk.com). 
Enquiries: 
 
Prosperity Minerals Holdings Limited           Tel: +44 (0) 20 7638 9571 
Patrick Li 
Sandy Chim 
Neelke Kruger 
 
Daniel Stewart & Company Plc                       Tel: + 44 (0) 20 7776 6550 
Emma Earl 
Paul Shackleton 
 
Citigate Dewe Rogerson                                  Tel: + 44 (0) 20 7638 
9571 
Martin Jackson 
George Cazenove 
 
Notes to Editors: 
 
Prosperity (AIM: PMHL) is: 
 
*   an iron ore trading business serving the PRC; 
 
*   involved in the manufacture and sale of cement and clinker in the same 
market; and 
 
*   an investor in specialty real estate development projects. 
 
Prosperity recently disposed of its cement business in the PRC but retained its 
33.06% interest in Anhui Chaodong Cement Company Limited ("ACC"). ACC is located 
in Anhui Province in eastern PRC. The designed sellable output capacity of 
clinker** and cement at ACC is 3.4 million tonnes per year. On 1 September 2010, 
Prosperity acquired a 25% equity interest in Liaoning Changqing Cement Co. 
Limited ("Liaoning Changqing"). Liaoning Changqing completed construction of a 
new 2 million tonnes per annum cement and clinker production line in Liaoning, 
PRC in April 2010. Normal production commenced on 2 July 2010. 
The iron ore trading business has been operating since 1992 and sources iron 
ore, for shipment and use in the PRC, from major international iron ore 
producers in South Africa, Brazil and Australia, as well as from South East 
Asia, Thailand and Malaysia in particular. The majority of the Company's iron 
ore is sold to the large steel manufacturers in the PRC and, in the fiscal year 
ended 31 March 2009, Prosperity shipped 4.4 million tonnes of iron ore. This 
volume increased to 7.9 million tonnes in the fiscal year ended 31 March 2010. 
 
The PRC is the World's third largest economy (behind the US and Japan) and the 
largest producer and consumer of cement and the biggest buyer of iron ore. 
 
As from 1 February 2010, Prosperity also has a real estate investment and 
development division and has recently entered into a number of agreements 
designed to build up a portfolio of PRC property and development assets. 
 
**Clinker is a complex calcium alumino-silicate material produced by the 
calcinations of limestone and clays. It is then ground and mixed with gypsum to 
form cement or, more correctly, Portland Cement. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCGGURABUPUUMU 
 

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