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3 Apr 2018 07:00
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Action Hotels plc
("Action Hotels", the "Group" or the "Company")
Related Party Loan
Action Hotels plc, a leading owner, developer, and asset manager of branded three and four-star hotels in the Middle East and Australia, advises that it has agreed an unsecured loan agreement with EBLA Computer Consultancy Co. KSC ("EBLA"). Rawaf Bourisli, is a Director of the Company and Chairman of EBLA and Sheikh Mubarak A. M. Al-Sabah (Chairman of the Company) is directly and indirectly interested in greater than 30% of EBLA's ordinary share capital. The loan therefore constitutes a related party transaction under the AIM Rules.
The loan is for USD$15m at an interest on the loan of 9%, payable quarterly in arrears. Repayment Terms will be 3 payments of US$5m, payable in each case 360 calendar days after the initial drawdown with the full term being 3 years as of the date of the initial drawdown.
Funds will be used as contribution towards the construction of pipeline hotels, including Dubai HealthCare City, Kingdom of Saudi Arabia projects and other corporate uses.
The independent directors of the Company (being the directors of the Company excluding Sheikh Mubarak A. M. Al-Sabah and Rawaf Bourisli), having consulted with the Company's nominated adviser, WH Ireland Limited, consider that the terms of the loan are fair and reasonable insofar as its shareholders are concerned.
Action Hotels PLC Alain Debare, Chief Executive OfficerKatie Shelton, Director of Corporate Affairs
| Tel: +44 (0) 20 7907 9663
|
WH Ireland Limited Adrian HaddenJessica CaveAlex Bond | Tel: +44 (0) 20 7220 1666 |
Action Hotels PLC is a leading owner, developer and asset manager of branded three and four star hotels in the Middle East and Australia. Established in 2005, Action Hotels currently has 14 completed hotels with 2,623 rooms in aggregate across the Middle East and Australia, with further properties in development in the Middle East.
More information is available at http://www.actionhotels.com/
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