18 Mar 2015 07:00
C H Bailey Plc
Sale of Remaining Property in Malta
CH Bailey (the "Company") is pleased to announce completion of the sale of the final remaining property at its Maltese subsidiary St Georges Bay Hotel Limited ("SGBH") for the sum of Euro 13,343,283 (£9,491,349).
As announced on the 28th October 2009, the Company obtained shareholder approval for SGBH to enter into an agreement to dispose of all of its properties in Malta to Garnet Investments Limited ("GIL"), a company incorporated in Malta.
On the 9th September 2011, SGBH agreed with GIL to vary the sale agreement to alter the timing of the sale of the main site. The total consideration of Euro 29,117,167 (£25,538,667) payable by GIL for the Main Site remained unchanged. Pursuant to the variation, part of the main site, which included the Old Villa and adjoining areas, was sold to GIL for the sum of Euro 15,373,884 (£12,484,433). In addition, pursuant to the variation of the sale agreement, GIL was given until 30th March 2015 to complete the purchase of the remaining SGBH assets (the "Remaining Property").
As part of the variation, GIL also agreed and paid a deposit of Euro 400,000 (£350,840) on the 12th April 2013.
SGBH yesterday completed the sale of the Remaining Property for the sum of Euro 13,343,283 (£9,491,349) and completion funds have been received.
As outlined in September 2011, the Board will consider the best use of the funds taking into account the existing economic climate and the currency markets. The Board will give primary consideration to a reduction of any borrowings and the immediate and future working capital requirements of the Company including new property investment in Malta and Tanzania. The Board will also, as previously announced, give consideration to declaring a special dividend.
The Company will update shareholders with any further developments as and when they arise.
Contacts:
CH Bailey plc
Bryan Warren, Company Secretary +44 (0) 1633 262 961
Arden Partners plc
Nick Ellis, Ciaran Walsh
+44 (0) 207 614 5900
Notes
In this announcement, all amounts denominated in Euro are translated into Sterling at an exchange rate of Euro : £0.7113 with the exception for;
a) the amount received in September 2011: and
b) the amount received in April 2013 which were based on the exchange rates prevailing at the time.