Last checked at 2 Jan 2013 13:49
For immediate release 2 January 2013
ASSOCIATED BRITISH ENGINEERING PLC ("ABE" or "the Company")
Investment in Akoris Trading Limited
The Company is pleased to announce that British Polar Engines Limited ("BPE"), a wholly-owned subsidiary of ABE, has today invested US$500,000 in a newly formed company Akoris Trading Limited ("Akoris") by way of a subscription for 500 A shares which will represent 50% of the equity and carry 100% of the voting rights. In addition, BPE will make a commercial loan facility of £200,000, secured by way of a fixed and floating charge on the assets of Akoris for working capital purposes. The Articles of Akoris provide for A Shareholders to appoint up to three individuals as directors, who initially will be Colin Weinberg, David Brown and Rupert Pearce-Gould, Directors of BPE.
The business of Akoris will be commodity and natural resource trading, finance and investment..
The investment by BPE is part of a joint venture arrangement. At the same time, a total of US$500,000 will be subscribed by other parties for 500 B Shares in Akoris, including David Brown, Chairman of ABE, who has subscribed $124,000 for 124 B Shares. The B Shares are non-voting shares, and the Articles of Akoris provide for B Shareholders to appoint one individual as a director, who initially will be Marc Weisberger, chief executive of Akoris.
Mr Weisberger has wide experience in the sector gained from his previous positions at Clyde & Co LLP, Glencore International and Alaska Metals, as well as his commodity advisory services to banks, traders and producers.
Colin Weinberg, Director commented: " We are delighted to be involved in this new venture, and have every confidence in the abilities of the management. The venture will be reviewed at the end of nine months to ensure prospects of success remain present".
Contact:
Colin Weinberg, Associated British Engineering PLC 0043 664 885 019 80
David Brown, Associated British Engineering PLC 0044 781 418603
Roland Cornish/Felicity Geidt, Beaumont Cornish Limited 0207 628 3396
Note: the transaction is a related party transaction under the Listing Rules ("LR"), but is of such a kind that the requirements under LR11.1.7R to LR11.1.10R do not apply by reason of LR11.1.6R (2).