LONDON (Alliance News) - Kimberly Enterprises NV PLC said Thursday it has reached an agreement with funds managed by Heitman LLC to waive its share of a funds distribution generated from property funds Arces International BV and ENMAN BV amounting to EUR1.1 million.
In return, Heitman will transfer to Kimberly all its rights in Arces and ENMAN. Arces and ENMAN are both joint venture companies, which own and develop land in Eastern European countries, currently jointly owned by Heitman and Kimberly.
Following the transaction, Kimberly will own 100% of both Arces and ENMAN and will consolidate both companies in its financial statements. It said it estimates that it will recognise a maximum loss of EUR0.6 million as a result of the transaction.
Kimberly said it expects that the total future cash flow generated from asset sales by Arces and ENMAN will increase by approximately EUR3.3 million as a result of the transaction. This is a net EUR2.2 million after allowing for the EUR1.1 million cost of the transaction.
Shares in Kimberly trade up 6.00% at 0.265 pence Thursday morning on the news.
By Preten Patel; pretenpatel@alliancenews.com
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