ZOL.L Regulatory News (ZOL)

9 Sep 2005 08:00

Crosby Capital Partners Inc09 September 2005 9 September 2005 CROSBY CAPITAL PARTNERS INC. ('Crosby' or the 'Company') Placement of a portion of the company's interest in IB Daiwa Corp ("IB Daiwa") Crosby announces that it has sold 20 million IB Daiwa shares to institutionalinvestors via an international placement. The net proceeds to Crosby from thesale amounted to US$40.4 million in cash. After this disposal, Crosby retains an interest in 87 million IB Daiwa shares,comprising 22 million shares and warrants to subscribe for a further 65 millionshares. This interest excludes any shares that Crosby might receive as a resultof the previously announced offer made by IB Daiwa for Lodore Resources Inc. ("Lodore"), a company in which Crosby has a 35% interest. Full acceptance byCrosby of IB Daiwa's offer for Lodore would result in Crosby receivingapproximately 34.3 million shares in IB Daiwa. CEO, Simon Fry, commented "Crosby's Merchant Banking division is increasinglyrecognised as a potent deal making force, and I am very pleased that, followingthe placement of shares, IB Daiwa now has strong international institutionalinvestors who share our enthusiasm for the future of a Japanese based entitythat is focused on natural resources. I believe that this diversification of IBDaiwa's share register is very positive. The recent announcement by IB Daiwa ofa binding commitment to acquire US based Darcy Petroleum, and the outcome of therecent EGM of IB Daiwa, where all proposed resolutions were carriedsuccessfully, now allow IB Daiwa to proceed with the general offer for Lodore.This together with the subsequent appointment of Mr. Seiki Takahashi as the newPresident of IB Daiwa, are important milestones that provide the market withgreater confidence and clarity in the value that IB Daiwa is building for itsshareholders". He added, "Crosby Capital Partners continue to be by far the largest shareholderof IB Daiwa, and our commitment and enthusiasm remains stronger than ever,whilst the sale of a small portion of our interest in the company allows our ownshareholders to better appreciate Crosby's strong balance sheet that remainsfree of any obligations or debt". For further information, please contact: At CrosbySimon Fry Tel: +44 (0) 20 7590 2800Martin Angus Tel: +852 2169 2800 At Fishburn-HedgesAndy Berry Tel: +44 207 839 4321 Background On 31 March 2005 Crosby announced that it had acquired a significant interest inIB Daiwa in the form of warrants to subscribe for 107 million shares. Thewarrants are currently exercisable at 30 Yen. In total, Crosby has now exercisedwarrants to subscribe for 42 million shares, although the sale of 20 millionshares means that Crosby now owns 22 million shares and warrants that whenexercised would result in its owning a further 65 million shares. At 30 June2005, Crosby valued its entire interest in IB Daiwa at US$41 million. This information is provided by RNS The company news service from the London Stock Exchange