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28 Mar 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.
28 March 2018
Action Hotels plc
Related Party Loan Guarantees
Action Hotels plc ("Action Hotels", the "Group" or the "Company"), a leading owner, developer, and asset manager of branded three and four-star hotels in the Middle East and Australia, advises that it has a number of loan agreements which have been guaranteed by the Al Sabah family or Action Group Holding Company (K.S.C.C). These constitute related party transactions under the AIM Rules.
Of the Company's loan facilities, total facilities in respect of approximately USD$177m with third party banks are guaranteed by one of; Sheikh Mubarak A. M. Al-Sabah, Sheikha Dr. Souad Al-Sabah or Action Group Holding Company (K.S.C.C). The Company has agreed to pay fees of c.1.5% of each of the loan facilities in return for providing the guarantees (the "Guarantees"). For the year ended 31 December 2017, the Company has paid c.USD$1.2m and anticipates paying up to USD$2.6m in the year ending 31 December 2018 in respect of the Guarantees.
Details for the loan facilities to which the Guarantees relate are provided at the bottom of this announcement.
By reason of Sheikh Mubarak A. M. Al Sabah being a director of, and shareholder in Action Hotels, as well as being a director of Action Group Holding Company (K.S.C.C) and Sheikha Dr. Souad Al-Sabah being a shareholder of Action Group Holding Company (K.S.C.C) a closely associated person to Sheikh Mubarak A. M. Al-Sabah, the aggregate amount of the fees for the provision of the Guarantees constitutes a related party transaction under AIM Rule 13 of the AIM Rules for Companies. The independent directors of the Company (being the directors of the Company excluding Sheikh Mubarak A. M. Al Sabah and Rawaf Bourisli), having consulted with the Company's nominated adviser, Zeus Capital Limited, consider that the terms of the Guarantees are fair and reasonable insofar as its shareholders are concerned.
Bank | Property | Guarantor | Total Loan Facility in US$ |
NBK - Bahrain | Ibis Amman | Dr. Souad Al Sabah | 9,040,000 |
NBK - Jordan | Ibis Amman | Dr. Souad Al Sabah | 5,460,000 |
Boubyan - Kuwait | Ibis Sharq | Dr. Souad Al Sabah | 29,816,134 |
Ahli Bank - Oman | 3x Oman Properties | Sheikh Mubarak | 72,500,000 |
BLME - London | IT Equipment | Dr. Souad Al Sabah & Sheikh Mubarak | 5,000,000 |
ADCB | Tulip Inn RAK | Action Group Holding | 5,445,455 |
ADCB | Al Majaz Sharjah | Action Group Holding | 14,975,000 |
ADCB | Novotel DHCC | Action Group Holding | 35,123,182 |
For more information, contact:
Action Hotels PLC | Tel: +44 (0) 20 7907 9663 | |
Alain Debare, Chief Executive Officer | ||
Katie Shelton, Director of Corporate Affairs | ||
Zeus Capital Limited (NOMAD & Broker) | |
Dan Bate / Andrew Jones | Tel: +44 (0) 16 1831 1512 |
Victoria Ayton | Tel: +44 (0) 20 3829 5000 |
Notes to Editors
Action Hotels PLC
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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