9 Nov 2009 15:31
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 Corporation Limited
("Great Eastern" or "the Company")
£28.8 million raised through placing
Great Eastern (GEEC.L), a company involved in the exploration, development and production of coal bed methane in India, announces that the Company has conditionally raised £28.8 million (before expenses) by way of a sale of Depositary Receipts ("DRs") held by YKM Holdings International or its subsidiaries and associated companies ("YKMHIL") ("the Sale"). Each DR represents 0.5 ordinary share of INR10 each in the capital of the Company ("the Sale DRs").
The Sale has been undertaken by Arden Partners plc ("Arden Partners") and RBS Capital Markets who have placed the Sale DRs with institutional and other investors at a price of 400 pence per DR (the "Sale Price"). The Sale is at a discount of 4.19% to the middle market price of the DRs of the Company as derived from the daily Official List of the London Stock Exchange on 6 November 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 convened on or around 1 December 2009 seeking authority to allot such shares. Mr. Yogendra Kr. Modi and Mr Prashant Modi have undertaken to procure that all their family shareholdings (representing as at today's date 64.47% of the total issued share capital of Great Eastern) will vote in favour of such resolutions to be proposed at the forthcoming general meeting. Until then the net proceeds will be with the Company as advance against share capital.
Commenting on the Sale, Yogendra Kr. Modi, Chairman and CEO, said:
"We are delighted with the strong support from our existing and new investors. The placing proceeds will be used towards the drilling of a further 43 wells, fracturing 70 wells and for a further gathering station and pipeline."
For further information please contact:
Great Eastern Energy +44 (0)20 7337 1516
YK Modi, Chairman & CEO
Prashant Modi, President & COO
Arden Partners plc +44 (0)20 7398 1632
Richard Day
Adrian Trimmings
RBC Capital Markets +44 (0) 20 7653 4667
Sarah Wharry
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").
The Sale DRs 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 the 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.
Arden Partners, which is authorised and regulated by the Financial Services Authority, is acting exclusively for Great Eastern and for no one else in connection with the book building and the Placing and will not be responsible to anyone other than Great Eastern 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.
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.
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 regarding Great Eastern's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to 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 of Great Eastern 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 regarding Great Eastern's present and future business strategies and the environment in which Great Eastern 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. Neither Great Eastern nor Arden nor any other person undertakes any obligation (other than, in the case of Great Eastern, pursuant to the Listing Rules and the Disclosure and Transparency Rules of the UK Listing Authority) to update publicly any of the information contained in this announcement, including any forward-looking statements, in the light of new information, change in circumstances or future events.