SVE.L Regulatory News (SVE)

8 Mar 2007 10:22

Starvest PLC08 March 2007 Starvest plc ("the Company") Related party loan The Company announces that it has entered into a loan agreement dated 6 November2006 with Mr Eirion Andrew Charles Neubauer and associated family interests("the lenders") whereby the lenders have lent the Company the sum of £1 millionat a commercial rate of interest for a period of one year ending 6 November2007, such period to be extended by mutual agreement. Under the terms of theloan agreement, the lenders have the right to a charge over certain of theCompany's assets. The funds, which have been drawn down, are intended be usedby the Company to progress its investment programme. The Starvest directors remain confident of the long term prospects of thecompanies in which it invests and sees many new opportunities not least in theresource sector. Given the current discount of the Company's share price to itsnet asset value, the directors believe that debt is a cost effective means offunding further investment. As a substantial shareholder in the Company, the lenders are a related party ofthe Company and, by virtue of its size, the loan falls to be disclosed as arelated party transaction. The Starvest directors, having consulted with theCompany's nominated adviser, consider that the terms of the transaction are fairand reasonable insofar as the Company's shareholders are concerned. Enquiries to John Watkins, 01483 771992; john@starvest.co.uk 8 March 2007 End This information is provided by RNS The company news service from the London Stock Exchange