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9 Nov 2009 15:31
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09 November 2009
THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN OR ANY JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION IS UNLAWFUL.
Great Eastern Energy CorporationΒ Limited
("Great Eastern" or "the Company")
Β£28.8Β million raised throughΒ placing
Great EasternΒ (GEEC.L),Β a company involved in the exploration, development and production of coal bed methane in India, announces that the Company hasΒ conditionallyΒ raised Β£28.8Β million (before expenses) by way of aΒ saleΒ ofΒ Depositary Receipts ("DRs")Β held by YKM Holdings International or its subsidiaries and associated companies ("YKMHIL") ("theΒ Sale"). Each DR represents 0.5 ordinary share of INR10 each in the capital of the Company ("the Sale DRs").Β
TheΒ SaleΒ has been undertaken by Arden Partners plc ("ArdenΒ Partners")Β and RBS Capital MarketsΒ who have placed the Sale DRsΒ with institutional and other investors at a priceΒ ofΒ 400Β pence perΒ DRΒ (the "SaleΒ Price").Β TheΒ SaleΒ is at a discount ofΒ 4.19%Β to the middle market price of theΒ DRsΒ of the Company asΒ derived from the daily Official List of the London Stock Exchange onΒ 6 NovemberΒ 2009, the latest date prior to the announcement.
YKMHIL has undertaken to Arden Partners that it will use the net proceeds from the placing (net of commission, legal fees, direct expenses, bank charges etc.) to subscribe for such number of new ordinary shares in Great Eastern as is equivalent to the underlying Great Eastern shares represented by the Sale DRs ("New Great Eastern Shares"). In addition, Great Eastern has undertaken to Arden Partners that it shall, subject to approval of the shareholders, issue the New Great Eastern Shares to YKMHIL. The New Great Eastern Shares will not form part of or be included in the DR programme for Great Eastern.
As at today's date the Company does not have sufficient shareholder approval to allot the New Great Eastern Shares and a general meeting of shareholders will be convenedΒ on or around 1 December 2009 seeking authority to allot such shares. Mr.Β Yogendra Kr. Modi and MrΒ Prashant ModiΒ have undertaken to procure that all their family shareholdingsΒ (representing as at today's dateΒ 64.47%Β of the total issued share capital ofΒ Great Eastern)Β will vote in favour of such resolutions to be proposed at the forthcoming general meeting.Β Until then the net proceeds will be with the Company as advance against share capital.
Commenting on theΒ Sale,Β YogendraΒ Kr.Β Modi, Chairman and CEO, said:
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"We are delighted with the strong support from ourΒ existing and newΒ investors. TheΒ placingΒ proceedsΒ willΒ be used towardsΒ the drilling of a further 43 wells, fracturing 70 wellsΒ and for a furtherΒ gathering stationΒ and pipeline."Β
For further information please contact:
Great Eastern Energy Β +44 (0)20Β 7337 1516
YK Modi, Chairman & CEO
Prashant Modi, President & COOΒ
Arden Partners plc +44 (0)20 7398 1632
Richard Day
AdrianΒ TrimmingsΒ
RBC Capital Markets +44 (0) 20 7653 4667
Sarah WharryΒ
Brett Jacobs
Pelham Public Relations +44 (0)20 7337 1516
Philip Dennis
Disclaimer
www.geecl.com/IPO-SEBI-Disclaimer.html
This announcement is for information purposes only and does not constitute an offer to sell or an invitation to subscribe for or a solicitation of an offer to buy or subscribe for any securities in any jurisdiction including in which such an offer or solicitation is unlawful and is not for distribution in or into, without limitation, the United Kingdom, the United Sates, Canada, Australia or Japan (the "Excluded Territories"), or to US persons (within the meaning of Regulations of the United States Securities Act 1933 (as amended) (the "Securities Act").
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TheΒ SaleΒ DRsΒ have not been and will not be registered under the Securities Act or under the applicable securities laws of any state in the United States or any Excluded Territory and, unless an exemption under such act or laws is available may not be offered for sale or subscription or sold or subscribed directly or indirectly within the Excluded Territories or for the account or benefit of any national, resident or citizen of the Excluded Territories. No public offering of securities will be made in theΒ United States. The distribution of this announcement in other jurisdictions may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of such jurisdictions.
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Arden Partners, which is authorised and regulated by the Financial Services Authority, is acting exclusively forΒ Great EasternΒ and for no one else in connection with the book building and the Placing and will not be responsible to anyone other thanΒ Great EasternΒ for providing the protections afforded to clients of Arden nor for providing advice in relation to the Placing or the book building or any other matters referred to in this announcement.
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The contents of this announcement are not to be construed as legal, financial or tax advice. If necessary, each recipient of this announcement should consult his, her or its own legal adviser, financial adviser or tax adviser for legal, financial or tax advice.
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This announcement contains certain statements that are or may be "forward-looking statements". These statements typically contain words such as "intends", "expects", "anticipates", "estimates" and words of similar import. All the statements other than statements of historical facts included in this announcement, including, without limitation, those regardingΒ Great Eastern's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating toΒ Great Eastern's products and services) are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and therefore undue reliance should not be placed on such forward-looking statements. There are a number of factors that could cause the actual results, performance or achievements ofΒ Great EasternΒ or those markets and economies to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regardingΒ Great Eastern's present and future business strategies and the environment in whichΒ Great EasternΒ will operate in the future and such assumptions may or may not prove to be correct. Forward-looking statements speak only as at the date they are made. NeitherΒ Great EasternΒ nor Arden nor any other person undertakes any obligation (other than, in the case ofΒ Great Eastern, pursuant to the Listing Rules and the Disclosure and Transparency Rules of the UK Listing Authority) to update publicly any of theΒ information contained in this announcement, including any forward-looking statements, in the light of new information, change inΒ circumstances or future events.
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