Issue of Equity

29 May 2007 07:02

Formation Group PLC29 May 2007 29 May 2007 FRM.L Formation Group PLC ("Formation" or the "Company") Issue of Equity Formation announces that it has agreed, conditional upon completion of theSubscription Agreement (as defined below), to issue 8,823,529 new ordinaryshares of one pence each in the ordinary share capital of the Company ("NewOrdinary Shares") at a cash price of 17 pence each to David Anthony Kennedy orhis nominee. It is intended that the monies raised from this subscription for the NewOrdinary Shares will be used by the Company to assist it to complete itssubscription for approximately 6,100 ordinary shares of a nominal value of €1each in Columbia Formation Group (Ireland) Limited ("CFGIL") as required underthe Subscription Agreement. CFGIL will be the holding company for two major developments in the Republic ofIreland: 1. Clancy Quay, Dublin - a site which comprises 14.5 acres of land near the centre of Dublin. On 26 April 2007 the first stage of development commenced; it has already achieved substantial pre-sales and the land at Clancy Quay has recently been valued at €135m; and 2. Davitt Road, Dublin - a site which comprises 4.5 acres of land at Davitt Road, Dublin. The parties have agreed to seek planning permission in due course to develop the land. The land at Davitt Road has recently been valued at €35m. A further announcement will be made in due course when the SubscriptionAgreement becomes unconditional, following which application will be made forthe New Ordinary Shares to be admitted to trading on AIM. The New Ordinary Shares will, if issued, rank pari passu with the ordinaryshares of one pence each in the capital of the Company currently in issue ("Ordinary Shares"). Upon completion of the Subscription Agreement, following the issue of the NewOrdinary Shares and assuming there is no issue of any further Ordinary Shares,the number of Ordinary Shares in issue will be 135,184,725, of which the KennedyFamily Trust (as defined below) will ultimately control 28.89%. In addition, MrKennedy will have an interest in 28.89% of the total voting rights of theCompany. For the purposes of this announcement: "Kennedy Family Trust" means the Impala Discretionary Settlement (a trust inwhich Mr Kennedy and certain of his family members are named discretionarybeneficiaries). The Kennedy Family Trust is managed by Balchan ManagementLimited, an independent Guernsey licensed fiduciary services provider; and "Subscription Agreement" means an agreement proposed to be entered into by andbetween, inter alios, (1) Impala Holdings Limited (a Guernsey registered companywholly owned by the Kennedy Family Trust), (2) Formation and (3) CFGIL. For further information, please contact: Neil Rodford, Formation Group PLC Tel: 01625 539 832David Youngman, WH Ireland Limited Tel: 0161 832 2174Katie Tzouliadis, Biddicks Tel: 0207 448 1000 Formation's website can be accessed at: www.formationgroupplc.com This information is provided by RNS The company news service from the London Stock Exchange