22 Jul 2016 17:31
THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION
IN OR INTO THE RUSSIAN FEDERATION, THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN
AFI DEVELOPMENT PLC
("AFI DEVELOPMENT" OR "THE COMPANY")
FURTHER DEFERRAL OF LOAN PRINCIPAL PAYMENTS, FURTHER UPDATE FROM AFRICA ISRAEL AND UPDATE ON TIMING FOR SIX MONTH RESULTS TO 30 JUNE 2016
London, 22 July 2016 - Further to the Company's announcements on 1st and on 12th July 2016, on the decision by VTB Bank PJSC ("the Bank") to postpone the second quarterly principal payments due to the Bank on 30th June 2016, the Company provides the following update.
On 21th July 2016 the Board of Directors of AFI Development approved addenda to the loan facility agreements and respective security agreements with the Bank, according to which the due date for payment of the second quarter principal payments of US$1.815 million and US$6.5 million by the borrowers, Krown Investments LLC and Bellgate Constructions Limited respectively, shall be postponed to 30th September 2016. The parties intend to execute the addenda on 25th July 2016..
Further to the Company's announcements on 19th July 2016 in connection with the proposed sale of Africa Israel Investments Ltd's ("AI") holdings in securities of AFI Development to Mr Lev Leviev, the Company has received a further notice from AI as follows:
Changes and Clarifications to the Principles of the Acquisition Scheme
· Following legal review by legal counsel to AFI Development, an additional regulatory approval has been included as a condition precedent to closing of the Purchase Transaction, being the receipt of an exemption from the Cyprus Securities and Exchange Commission from the submission of a mandatory tender offer.
· With respect to the Purchase Option mentioned in the previous notice, it should be noted that the exercise mechanism of the Purchase Option provides that upon its exercise the AI Bondholders will only receive payments in cash (and not securities of AFI Development) which will reflect the monetary benefit attributed to future increase of the market price of the securities of AFID over the exercise price of the Purchase Option.
In addition, due to the Company's focus on the disposal, as announced on 15th July 2106, and ongoing discussions surrounding the potential guarantee between Mr Leviev and the Bank and the associated 10 month moratorium, the announcement of the Company's financial results for the six months ended 30 June 2016 will not take place on 18 August 2016, as announced previously, but will be announced before the end of August 2016.
- ENDS -
For further information, please contact:
AFI Development, +7 495 796 9988
Ilya Kutnov, Corporate Affairs/Investments Director (Responsible for arranging the release of this announcement)
Citigate Dewe Rogerson, London +44 20 7638 9571
David Westover
Sandra Novakov
Marina Zakharova de Calero
This announcement contains inside information.
About AFI Development
AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001, AFI Development is a publicly traded subsidiary of Africa Israel Investments Ltd.
AFI Development is listed on the Main Market of the London Stock Exchange and aims to deliver shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction and quality of customer service.
AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets across Russia, with Moscow being its main market. The Company's existing portfolio comprises commercial projects focused on offices, shopping centers, hotels and mixed-use properties, and residential projects. AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favorable return.
AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighborhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing a strong base for future.