Public Service Properties Inv Ltd Further update (5958D)
July 07 2016 - 10:56AM
UK Regulatory
TIDMPSPI
RNS Number : 5958D
Public Service Properties Inv Ltd
07 July 2016
7 July 2016
Public Service Properties Investments Limited (the
"Company")
Further update
The board of PSPI notes the movement in the share price of the
Company today and re-confirms that with effect from 7 July 2016,
the Company has compulsorily redeemed 22,531,399 ordinary shares of
$0.01 each in the Company ("Ordinary Shares") for a total
consideration of GBP11,491,013.50 ("Compulsory Partial
Redemption"). The resultant issued share capital of the Company
comprises 227,655 Ordinary Shares.
As a result of the sale of its remaining properties (the
"Disposal") which was announced on 10 March 2016 (details of which
are set out below) and completed on 22 April 2016, which
constituted a fundamental change of business pursuant to Rule 15
and Note 5.6 for Investing Companies of the AIM Rules for
Companies, the Company has 12 months from that date to implement
its investing policy, failing which trading in the Company's shares
on AIM will be suspended.
Following the Disposal and the Compulsory Partial Redemption, a
significant majority of the Company's remaining assets comprise
cash of approximately GBP1.5 million which, after deducting net
current liabilities of GBP0.3 million, is equivalent to an
unaudited net asset value ("NAV") as of today of approximately 527p
per share, which the Board proposes to return to shareholders in
due course. A significant majority of the Company's cash is in
sterling; hence, the Company does not expect to incur any
significant impact from the movement in foreign exchange rates,
most notably between sterling and the Euro.
The unaudited NAV assumes that there are no claims made against
the warranties included in sale transaction documentation relating
to the disposal of the Company's assets and businesses during the
last two years and that there will be no significant unidentified
costs between now and the final return of capital to
shareholders.
While the Company expects that it will be able to complete a
final return of capital before the end of the first quarter of
2017, it is exploring ways in which it can accelerate this
process.
The text of the Company's announcement dated 10 March 2016 is
set out below: -
"PSPI (AIM: PSPI), the specialist European real estate
investment and financing company is pleased to announce that it has
exchanged conditional contracts to dispose of its three remaining
properties leased to the Marseille Kliniken Group ("MK") for an
aggregate gross price of EUR10.0 million. The sales were executed
with subsidiaries of MK, were concluded under German law and are
expected to close within six weeks on completion of re-registration
of the properties in the appropriate land registry and after
registration of charges in favour of the purchasers' lender. The
sales were concluded at a discount of 2.0 per cent. to the
independent net value of the assets used in preparing the Company's
unaudited consolidated results as at 30 June 2015.
Approximately EUR4.1 million of the sale proceeds will be used
to repay senior debt secured against the three properties and
approximately EUR0.2 million will be used to settle pre-payment
penalties under an interest rate swap agreement with the senior
lender. The Group will apply the net sale proceeds to settle
transaction costs (estimated at EUR0.4 million) with the balance to
be used for general working capital purposes. The transactions will
complete the sale of the Company's remaining investment properties
held in all jurisdictions."
For further information please visit www.pspiltd.com or
call:
Dr. D. Srinivas Tom Griffiths
Ralph Beney Henry Willcocks
RP&C International Stockdale Securities
(Asset Manager) (Nomad and Broker)
020 7766 7000 020 7601 6100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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