Assetco Regulatory News (ASTO)

14/02/2011

The Company announced on 8 February 2011 that it had a shorter term debt requirement of approximately £4.0 million and that it was pursuing various alternatives to satisfy this. Since that time the Directors have been engaged in discussions with various parties with respect to the short term needs of the business.

The short term funding issues have arisen as a result of delays to the refinancing of non-recourse asset financing facilities of the business (the "Refinancing"). The current net book value of the assets which are the subject of the Refinancing is approximately £62.4 million. It is planned that as a result of the Refinancing the current debt of £50.6 million which is secured on these assets will be repaid and approximately £8.5 million of capital (net of fees and the cost of interest rate hedges) will be released to fund the working capital needs of the business.

Whilst the Directors remain confident that the Refinancing will be delivered before the financial year end, the delay has led to a significant strain on the cash resources of the business.

In order to meet its immediate needs the Company is in advanced discussions in relation to a short term debt facility of £3.5 million which will be used to satisfy the majority of the Company's immediate requirements and is seeking to release further amounts from other facilities available to it. At the same time the Company expects to receive waivers from certain technical breaches of its banking conditions. However, the Company will still require the Refinancing to meet the short term working capital requirements of the business.

In light of the delays to the Refinancing, the Directors are now considering a number of other solutions to the capital requirements of the business including an equity fundraising.

Consequently the Company announces that it has informed the potential offeror referred to in the announcement dated 31 January 2011 that it is discontinuing talks with it in order to concentrate on the Company's short term issues.

Notwithstanding the short term financing issues referred to above the Company's existing contracts continue to perform as expected and the Company is in discussions in relation to additional contracts in the Middle East and elsewhere, which it expects to be in a position to announce shortly.

Enquiries: 

Dealing Disclosure RequirementsUnder Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any paper offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any paper offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any paper offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any paper offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a paper offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing DisclosureUnder Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any paper offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any paper offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any paper offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a paper offeror, they will be deemed to be a single person for the purpose of Rule 8.3Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk <http://www.thetakeoverpanel.org.uk> , including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. If you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure, you should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129."