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10 Apr 2013 11:20
Metro Baltic Horizons PLC
Disposal of St. Petersburg asset
10 April 2013
The Board of Metro Baltic Horizons PLC ("MBH" or the "Company") announces that it has entered in to an agreement to dispose of the entire issued share capital of its subsidiary company Pedragon Investments Limited ("Pedragon") for an initial consideration of €5.5m and further deferred consideration of up to €0.2m (the "Disposal"). Pedragon owns the Company's St. Petersburg development asset.
Pedragon is being sold to Fitzroy Ventures Limited ("Fitzroy") a company controlled by Mr. Boris Petrov, the current manager of the St. Petersburg property following a competitive bidding process. In addition to the property asset Pedragon also contains €1.9million of loan notes that will transfer to Fitzroy. The St. Petersburg asset had a carrying value of €6.25m in the Company's latest published balance sheet as at 30 June 2012. Accordingly, the transaction represents a net gain on sale for the Company of €1.1m. The asset contributed approximately €0.05m to group operating profits in the year to 31 December 2012.
The proceeds of the Disposal will be used to continue to fund litigation and may in part be distributed to shareholders.
The Disposal is subject to certain standard conditions precedent and is expected to complete by 21 April 2013.
The Company is reviewing its Investing Policy in light of the Disposal.
Further announcements will be made as appropriate.
Enquiries
Metro Baltic Horizons PLC
Ronan Reid Tel: +353 1 6333843
S. P. Angel Corporate Finance LLP
Stuart Gledhill Tel: 020 3463 2260
This announcement will be available on MBH's website http://www.metrobaltichorizons.com/ as soon as practicable in accordance with AIM Rule 26.
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