LONDON (Alliance News) - Arricano Real Estate PLC said Monday it has purchased Green City LLC for USD1,560 to facilitate "more efficient management" of its property located in the Crimea.
Green City LLC is a company incorporated in Russia by Ukraine real estate developer Retail Real Estate SA and has been dormant for a number of years, Arricano said. Its only assets or liabilities of any significance are tax losses of around RUB1.20 billion and loans from Filgate Credit Enterprises Ltd of around USD22.6 million.
Arricano has entered into a deed of assignment with Filgate under which all amounts due to Filgate are assigned to Arricano for a nominal consideration of USD2.00. The acquisition is conditional on the assignment of these loans.
Arricano noted that Retail Real Estate SA and Filgate are both ultimately controlled by Hillar Teder, who is Arricano's majority shareholder. Teder held 64% of the shares in the company indirectly when Arricano last posted its results in June 2015.
This meant the transactions were considered to be related-party transactions and the independent directors of Arricano - Non-Executive Chairman Rupert Cottrell, Non-Executive Director Philip Scales and Non-Executive Director Michael Zampelas - consulted with Arricano's nominated advisor Smith & Williamson Corporate Finance Ltd.
The directors found the terms of the transactions are "fair and reasonable" insofar as its shareholders are concerned.
Shares in Arricano were untraded on Monday, having last traded at USD0.500.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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