MGP.L Regulatory News (MGP)

26 Sep 2006 07:00

White Star Property Holdings Plc ("White Star" or the "Company")Trading update / Issue of equityInvestment in Mercury Group PlcThe Board announces that between 17 September 2006 and 18 September 2006 theCompany agreed to acquire 11,600,714 shares in Mercury Group Plc ("Mercury")the AIM quoted real estate support services company from certain shareholdersin Mercury ("Vendor Shareholders") representing approximately 10.3 per cent ofMercury's issued share capital for a consideration of ‚£464,000. As part of theagreement the Vendor Shareholders have agreed to subscribe in cash for newordinary shares and warrants in White Star, details of which are set out below.The net cash outflow to the Company as a result of its investment in Mercuryamounts to ‚£82,800 as a result of the subscription of the new ordinary sharesin the Company and the purchase of warrants in the Company by the VendorShareholders. The directors of the Company believe that the investment inMercury will lead to a strategic relationship with Mercury which will benefitthe Company.Proposed issue of new ordinary sharesThe Company has agreed to issue 22,000,000 new ordinary shares in the Companyto the Vendor Shareholders for an aggregate consideration of ‚£298,000. The proceeds will be used to provide the Company with additional working capital.Following the proposed issue of shares referred to above the Company's issuedshare capital will amount to 300,559,500 ordinary shares of 1 pence per share,assuming no further issue of equity.The new ordinary shares will rank equally with the existing share capital ofthe Company. Application will be made to the London Stock Exchange for the newordinary shares to be admitted to trading on AIM.Proposed grant of warrantsIn consideration for an aggregate payment of ‚£83,200 the Board has agreed togrant warrants to the Vendor Shareholders over 81,850,000 new ordinary sharesin the Company's issued share capital, representing approximately 27% of thecurrent issued share capital of the Company. Further details relating to thewarrants are set out in the table below:-Number of shares Exercise Exercise period over which warrants price will be granted 80,000,000 1.4 16 March 2007 - 16 September 2009 1,850,000 1.73 16 March 2007 - 16 September 2009 ENDWHITE STAR PROPERTY HOLDINGS PLC