Issue of Equity

29 Jun 2007 14:34

Formation Group PLC29 June 2007 Formation Group PLC ("Formation" or the "Company") Re: Property Development and Subscription Agreement and Issue of Equity In a statement issued on 29 May 2007, Formation announced it intended tosubscribe for shares in Columbia Formation Group (Ireland) Limited ("CFGIL"),which is the holding company for two major property developments in Dublin, atClancy Quay and Davitt Road. Further to this statement, Formation is pleased to confirm that the SubscriptionAgreement relating to CFGIL has now been signed by all relevant parties, andthat, accordingly it has allotted 8,823,529 new ordinary shares of 1p each inthe ordinary share capital of the Company ("New Ordinary Shares") to DavidKennedy. Application has been made to admit the New Ordinary Shares to trading on AIM anddealings in the New Ordinary Shares are expected to commence on 5 July 2007.The total number of Formation Ordinary Shares in issue, following the issue ofthe New Ordinary Shares, is 205,772,960, of which David Kennedy and relatedcompanies, trusts and family members will ultimately control 53.5% of the totalOrdinary Shares in issue. Under the terms of the Subscription Agreement, Formation is acquiring 6,100ordinary shares of €1 (one Euro) each in CFGIL for a total consideration of€6,187,231. This holding will represent a 10% stake in CFGIL. At the same time,Bank of Scotland Ireland Limited has subscribed for a 20% stake in CFGIL andthe balance of shares will be held by Impala Holdings Limited (a Guernseyregistered company wholly owned by the Kennedy Family Trust). CFGIL is undertaking the re-development of two sites acquired in Dublin,Ireland. The first is 'Clancy Quay' a 14.5 acre site in Dublin's City centre.This re-development, which commenced on 26 April 2007, will take place on aphased basis and includes approximately 450 apartments (including 300 waterfrontapartments) in the first phase, basement parking facilities, several retainedlisted stone structures providing residential accommodation, and retail andoffice space. The second site is at Davitt Road, Dublin. It is at an early stageof development and the Company will update the market on progress in due course. The combined land value of the two sites has been recently independently valuedat over €170 million. The Company does not expect to receive dividend returns onthis investment until the Company's 2010 financial year at the earliest and willcontinue to update the market as appropriate. Commenting, Neil Rodford, Chief Executive, Formation said; "I am delighted that we have now concluded our subscription for a 10%shareholding in CFGIL, which holds the ownership of two valuable sites in Dublin- Clancy Quay and Davitt Road. It will take time to build out these schemes, andrealise the resultant revenue stream. Our 10% investment adds tangible assets tothe Company's balance sheet and importantly also demonstrates the Group'sprogress when considering our two strategic partners in this project. I lookforward to reporting progress on the development in due course." -ENDS- Enquiries Neil Rodford, Formation Group PLC Tel: 01625 539 832David Youngman, WH Ireland Limited Tel: 0161 832 2174Katie Tzouliadis, Biddicks Tel: 0207 448 1000 Formation Group's website can be accessed at: www.formationgroupplc.com Notes To Editors Formation Group PLC provides a range of financial advice, property investmentsolutions and representation management to professional athletes, sportinginstitutions and high net worth individuals. It also provides project managementservices to clients in the property sector. With offices in Wilmslow, London, Nottingham, Dublin and Washington D.C,Formation Group plc employs approximately 70 people. This information is provided by RNS The company news service from the London Stock Exchange