Placing/ capital reduction

17 Nov 2006 07:00

Albany Capital PLC17 November 2006 17 November 2006AIM: ALB ALBANY CAPITAL PLC ("Albany Capital" or "the Company") Conditional placing of £3,746,666 Proposed reduction of share premium account Extraordinary General Meeting Conditional placing The board of Albany Capital today announces that it has conditionally raisedapproximately £3,746,666 gross (£3,680,000 after expenses) through the placingof 187,333,333 new ordinary shares ("the Placing Shares") at 2 pence per share("the Placing"). The Placing is conditional inter alia on the passing ofcertain resolutions by the shareholders of the Company and accordingly anextraordinary general meeting of the Company (the "EGM") will be convened for11.00am on 14 December 2006. Subject inter alia to the passing of the resolutions at the EGM, applicationwill be made for the Placing Shares to trade on AIM and it is expected thatdealings in the Placing Shares will commence on 15 December 2006. The PlacingShares will rank pari passu in all respects with the existing shares in issue. Proposed reduction of share premium account The audited accounts of the Company disclose that, as at 30 September 2006, thetotal shareholders' funds were £3,765,091, of which there was £1,779,256 inrespect of called up ordinary share capital, £2,814,889 in respect of sharepremium account and an accumulated deficit on the profit and loss account of£829,054. The deficit on the Company's profit and loss account inhibits theCompany's ability to pay dividends to shareholders and accordingly, at the EGM,the Company is to seek the approval of shareholders to a reduction of theCompany's share premium account by £829,054 ("the Reduction") in order toeliminate the deficit on the profit and loss account. Subject to the passing ofthe appropriate resolution, your Board proposes to seek the confirmation of theCourt of the Reduction as soon as possible following the EGM. The Reductionwill only take effect if confirmed by the Court and upon the appropriatedocuments being lodged with the Registrar of Companies. It is anticipated thatthe Court Order confirming the Reduction will be made by mid February 2007 andthat the Reduction itself will become effective by the end of February 2007. Further information on the proposed resolutions is set out in a circularcontaining the notice of EGM (the "Circular") which was posted to shareholdersof the Company today. Copies of the Circular will be available during normalbusiness hours on weekdays (excluding public holidays) for one month fromtoday's date at the offices of W.H. Ireland Limited, Fifth Floor, 24 MartinLane, London EC4R 0DR. For further information please contact: Albany Capital PLC Chris Roberts +44 (0) 20 7937 4445 W.H. Ireland Limited Peter Jackson +44 (0) 20 7220 1666 This information is provided by RNS The company news service from the London Stock Exchange