20 Mar 2009 07:00
20 March 2009
Sorbic International plc
("Sorbic International" or "the Company")
Honour Field International Limited meets Profit Target
Issue of Deferred Consideration Shares
Sorbic International (ticker: SORB.L), the food preservatives group, is pleased to announce that Honour Field International Limited ('Honour Field'), which was acquired by the Company on 29 September 2008, has exceeded the profit target as detailed in the admission document of 4 September 2008 ("the Admission Document'). Thus Honour Field has achieved a minimum audited net profit after tax for the year ending 31 December 2008 of RMB60 million (£6.0million*) (the "Profit Target").
On 29 September 2008, the Company conditionally agreed to acquire the entire issued ordinary share capital of Honour Field for a consideration of up to £20.12 million. The consideration was payable in new ordinary shares, 9,860,000 to be issued on completion and up to a further 10,300,000 to be issued conditional upon Honour Field achieving the Profit Target. Accordingly, 10,300,000 New Ordinary Shares of 6p each ("the Deferred Shares") will be allotted on 23 March 2009 and application has been made for the Deferred Shares to be admitted to trading on AIM. It is expected that the admission will be effective and dealings will commence on 27 March 2009.
As detailed in the Admission Document, the Deferred Shares are subject to the lock in agreement put in place at the time of the acquisition.
Commenting, John McLean said:
"We are delighted that Honour Field exceeded its profit target in 2008, illustrating what an attractive acquisition it was for Sorbic. The Company continues to trade profitably and construction of the new production facilities remains on budget."
*Converted into GBP Sterling using the exchange rate at 31 December 2008, being £1:RMB 10.02
| Enquiries: | |
| Sorbic International plc, John McLean, Chairman | Tel: +44 (0)7768 031 454 |
| FinnCap, Geoff Nash | Tel: +44 (0) 20 7600 1658 |
| Hansard Group, John Bick | Tel: +44 (0) 7872 061007 |
Notes to Editors: www.sorbicinternational.com
Sorbic International's principal activity is the production and sale of the food preservatives Sorbic Acid and Potassium Sorbate from its base in Linyi City, Shandong Province, Peoples Republic of China ("PRC"). Approximately half of Sorbic International's production is sold to overseas markets, across 46 countries and half into the Chinese domestic market.
Sorbic Acid is a naturally occurring organic compound that is used in all kinds of foods for its anti-decomposition and anti-fungus function and also in grains, medicines, cosmetics, toothpaste, tobacco, animal feed, latex, paper-manufacturing and pesticides. Potassium Sorbate is used to inhibit moulds and yeasts in many foods, such as cheese, wine, yogurt, dried meat, baked goods, cosmetics and pharmaceuticals.