21 Apr 2011 15:36
Engel East Europe N.V.
("Engel" or the "Company")
Parent Company Update
Further to the announcement of results issued on 8 April 2011, Engel East Europe N.V. ("Engel" or "the Company"), the AIM listed Central and Eastern European property developer (EEE.L), is pleased to provide an update on the new investment in its parent company.
The announcement of results referred to the agreement dated 7 July 2010 between GBES Ltd. (a company incorporated in Cyprus) ("GBES"), Engel Resources and Development Limited ("ERD"), the parent company of Engel General Developers Ltd.("EGD"), and EGD, whereby GBES agreed to invest capital of approximately EUR 9.2 million for 53% of the enlarged share capital of ERD (part of which will be given as loan until the receipt of court approval) and to provide an additional credit line of approximately EUR 10.2 million to ERD.
The agreement has now been approved by the bond holders of ERD and of Engel Europe Limited ("EEL"), and it is subject to the approval shareholders of ERD at a shareholders meeting due to take place on 28 April 2011, and to the approval of the District Court of Tel Aviv. Upon receipt of the necessary shareholder and court approval, the investment will be completed, whereupon GBES has agreed to ensure that Engel is provided with sufficient financial resources to meet its short term working capital requirements. The suspension of trading of the Company's shares on AIM will continue for the time being and a further announcement will be made in due course.
Enquiries:
Engel East Europe N.V. | Tel: +31 20 778 4141 |
Assaf Vardimon
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Libertas Capital Corporate Finance Limited | Tel: +44 (0) 20 7569 9650 |
Sandy Jamieson |