IPSA.L Regulatory News (IPSA)

30 Aug 2007 07:00

IPSA Group PLC30 August 2007 30 August 2007 IPSA GROUP PLC ("IPSA" or the "Company") ISSUE OF SHARES FOR CASH TO METROPOLITAN LIFE LIMITED IN TERMS OF IPSA'S BROAD-BASED BLACK ECONOMIC EMPOWERMENT (''BBBEE'') INITIATIVE IPSA is pleased to announce that it has entered into an agreement withMetropolitan Life Limited, acting through its wholly-owned subsidiaryMetropolitan Asset Managers Limited ("Metropolitan"), in terms of whichMetropolitan will subscribe for 13,434,612 new ordinary shares of 2p each ("NewShares") in IPSA, representing 15.00% of IPSA's enlarged issued share capital ("the Transaction"). The subscription price per New Share is R8.85 (using anagreed exchange rate of ZAR/GBP of R14.75, the Sterling equivalent is 60p) andwill raise R118,896,316.20 (£8,060,767.20) for IPSA before expenses. Metropolitan has entered into a separate agreement with Market Demand Trading456 (Proprietary) Limited, trading as IMARA Energy Resources ("IMARA"), in termsof which IMARA has the option to purchase the New Shares from Metropolitansubject to certain terms and conditions. Upon exercise of this option,beneficial and legal ownership of the New Shares will pass to IMARA. The Transaction is conditional on the New Shares being admitted for trading onboth AIM, a market operated by the London Stock Exchange plc, and ALTx, thealternative exchange of the JSE Limited. Following the admission of the New Shares to trading on AIM and ALTx,Metropolitan will have an interest in 15,613,972 ordinary shares, representing17.4% of the enlarged issued share capital of the Company. There are no shares held in treasury, accordingly, the total number of votingrights in the Company following admission of the New Shares to AIM and ALTx willbe 89,564,081. IPSA CEO Peter Earl said. "IPSA is delighted to have been supported byMetropolitan, a major South African institutional investor, in achieving itsgoal of teaming up with a broad-based black economic empowerment group withknowledge of and a presence in the electricity industry in Africa. The linkwith IMARA will help us accelerate our programme of developing and owning powerplants in southern Africa to meet the rapidly growing electricity needs of itspeople." For further information please contact: Peter Earl, CEO, IPSA Group PLC +44 (0)20 7793 5600 Sean Lunn, Hichens, Harrison (Africa) +27 (0) 21 950 2711 Kevin Homann, Spirit Capital +27 (0) 11 784 1712 John Llewellyn-Lloyd, Noble & Company Limited +44 (0)20 7763 2200 Allan Piper, First City Financial +44 (0)7736 064982 +44(0)20 7436 7486 IMARA ENERGY RESOURCES IMARA was formed in 2007 specifically to house the BBBEE stake in IPSA. TheConsortium is currently evaluating other non-competing energy investments. IMARA encompasses 3 distinct BBBEE groupings, namely: National Pride Trading 426(Proprietary) Limited ("NATIONAL PRIDE"); Akina Energy Resources (Proprietary)Limited ("AKINA"); and, Itakane Trading (Proprietary) Limited ("ITAKANE"). NATIONAL PRIDE is a majority black-owned power sector-focused investmentcompany. It was founded by Premesh Narismulu and IPSA General Manager, DougKuni. The shareholders of NATIONAL PRIDE possess considerable operational andmanagement experience in the African power generation and distribution sectors.This group also operates and controls a portfolio of companies focused on thepower-sector supply chain. The portfolio is confined to 'best of breed'engineered products and engineering services. AKINA was founded by a group of eminent black professional women entrepreneurswith diversified investment interests. AKINA is represented by Ms RizelleSampson who is also Non-Exec Chairperson of IMARA. Other shareholders of AKINAinclude Ms Thoko Mpumlwana, Ms Nozipho January-Bardill, Golden Falls Trading &VUWA Investments. A BBBEE foundation, the Vulindlela foundation, benefitsthrough a profit-sharing arrangement with AKINA. ITAKANE, a group of Eastern and Western Cape-based black entrepreneurs, isrepresented by Arthur Shipalana, who himself has significant investmentinterests in the energy and resource sectors spanning solar, wind, gas, forestry& fishing. 30 August 2007 Noble & Company LimitedAIM Nominated Advisor and Joint Broker to IPSA Group PLC Standard BankALTx Sponsor to IPSA Group PLC Hichens, Harrison & Co. plcJoint Broker to IPSA Group PLC Spirit CapitalAdvisor to IMARA ENERGY RESOURCES This information is provided by RNS The company news service from the London Stock Exchange