rns15 Mar 2016 10:55
RNS Number : 0447S
Kimberly Enterprises N.V.
14 March 2016
Kimberly Enterprises N.V.
("Kimberly" or the "Company")
Short Term Loan and Asset Disposal
The Board of Kimberly, the AIM-quoted Eastern European residential property developer (KBE.L), announces that it has agreed to receive a short term loan ("Loan") in the amount of €2,164,000 from Real Property Investment (Guernsey) Limited ("RPIGL"). The Loan will be used to repay bank loans provided by Bank Leumi Le-Israel Ltd. to Eurobul Limited, a wholly owned subsidiary of the Company. The Loan is interest free and will be repaid from the cash proceeds arising from the sale of the Company's Canadian and other property assets.
RPIGL holds 6.44% of the voting rights and issued share capital of the Company. RPIGL is a sister company of the 100% shareholder of GBES Limited, which owns 53% of Engel Resources and Development Limited, which in turn indirectly owns 68.35% of Kimberly. The Loan is therefore considered to be a related party transaction under AIM Rules. The Board of Kimberly considers, having consulted with its nominated adviser, that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.
The Board of Kimberly is also pleased to announce that Arces International B.V. (a wholly owned subsidiary of the Company) has completed the sale its shares and receivables in its wholly owned subsidiary, Palace Engel Vokovice s.r.o ("Vokovice"). The sale of Vokovice is at book value and will result in net cash proceeds to Kimberly of approximately €0.7 million.
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