2 Nov 2015 14:18
2 November 2015
Arricano Real Estate plc
("Arricano" or the "Company")
Loan Assignment
Arricano is one of the leading real estate developers and operators of shopping centres in Ukraine. Today, Arricano owns and operates five completed shopping centres comprising 144,050 sqm of gross leasable area, and land for a further three sites currently under development.
Arricano (AIM: ARO) announces that the loan (the "Loan") it currently owes to International Baltic Investments Ltd ("IBI") (principal outstanding - US$15.3 million; accrued interest - approximately U$1.9 million; interest rate - 10.55% per annum; repayable - 13 August 2017) is being assigned by IBI to Barleypark Limited ("Barleypark"); as consideration for the assignment, Barleypark will pay IBI US$17.2 million with payment terms to be agreed by the parties. The Company has consented to the assignment of the Loan, which will remain in place as a liability of the Company with its terms unaffected by the assignment.
IBI and Barleypark are controlled by Hillar Teder, who controls 55.5% of the issued ordinary share capital of the Company, and consequently the assignment of the Loan is deemed to be a Related Party Transaction under the AIM Rules. The independent directors of the Company (Rupert Cottrell, Philip Scales and Michael Zampelas) consider, having consulted with its nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
For further information please contact:
Arricano Real Estate plc | Tel: +380 44 569 6708 |
Mykhailo Merkulov, CEO |
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Nominated Adviser and Joint Broker |
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Smith & Williamson Corporate Finance Limited | Tel: +44 (0)20 7131 4000 |
Azhic Basirov |
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Joint Broker |
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Whitman Howard Limited | Tel: +44 (0)20 7659 1250 |
Ranald McGregor-Smith |
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Financial PR |
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Novella | Tel: +44 (0)20 3151 7008 |
Tim Robertson / Ben Heath |
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