13 Jan 2016 07:58
Kimberly Enterprises N.V.
("Kimberly" or the "Company")
Update re Disposal
Further to the announcement released on 8 January 2016, the Board of Kimberly, the AIM-quoted Eastern European residential property developer (KBE.L), is pleased to announce that it has completed the disposal of the two Canadian residential developments for a total cash consideration of CAN$ 20.2 million (approximately €13.1 million). The properties are held (indirectly) by Montreal Residential Holdings Master Limited Partnership ("MLP"). Kimberly holds a 20% interest in future distributions of MLP.
As previously announced, the gross profit (before related expenses and tax duties) on completion of the sale by MLP is approximately CAN$ 9.4m (approximately €6.1m). The net cash proceeds of the disposals received by MLP is approximately CAN$ 18.7m (approximately €12.1m).
The net cash proceeds of the disposals will be distributed by MLP after completion of the disposals and the approval of the Company's partner in MLP. Kimberly's expected share of the distribution will be 20%, equating to approximately CAN$ 3.7m (approximately €2.4m) and the profit before tax of the transaction is expected to be CAN$ 1.7m (approximately €1.1m) which will be booked in the accounts of Kimberly under the "share of profit (loss) of equity-accounted investments, net of tax".
Based on prior agreements with Engel Resources and Development Ltd ("ERD"), all net proceeds generated from the Company's assets in Canada will be used to repay part of the outstanding debts of the Company to ERD, which stood at €25.1m as at 31 December 2015.
For further information, please contact:
Kimberly Enterprises N.V. | |
Assaf Vardimon | +31 20 778 4141 |
Cairn Financial Advisers LLP (Nomad) | |
Sandy Jamieson, Avi Robinson | +44 207 148 7900 |