Sale of Shares

22 Feb 2006 11:30

Falkland Islands Holdings PLC22 February 2006 Falkland Islands Holdings plc Sale of Falkland Oil and Gas Limited Shares Falkland Islands Holdings plc ("FIH"), an AIM quoted company operating (throughits subsidiaries) a range of businesses in the Falkland Islands, and thePortsmouth Harbour Ferry Company in the UK, announces that on 21 February 2006,it sold 1,802,941 shares in Falkland Oil and Gas Limited ("FOGL"), representing10.7% of its holding in FOGL and representing 1.96% of the current issued sharecapital of FOGL. The shares were sold for a net consideration of £2.4 million, generating aprofit of £2.1 million for FIH. The funds will be used in FIH's business andwill provide additional financial flexibility to facilitate future acquisitions. Following the transaction, FIH retains a shareholding of 15,000,000 shares inFOGL, representing 16.3% of FOGL's current issued share capital. The board of FIH has advised FOGL and KBC Peel Hunt that FIH does not intend todispose of any further shares in FOGL, other than in exceptional circumstances,for at least the next 12 months. KBC Peel Hunt is Nominated Adviser and Brokerto FOGL and Broker to FIH for the purposes of the AIM Rules and Dawnay Day isthe Nominated Adviser to FIH. Enquiries: Falkland Islands Holdings Tel: 01279 461 630David Hudd, Chairman 07771 893 267 College Hill Tel: 020 7457 2020Ben Brewerton / Nick Elwes Note for Editors FOGL was admitted to AIM on 14 October 2004 at which time FIH held 14,450,000shares (18.1% of the issued share capital). On 31 May 2005, FOGL raised £10million, before associated costs and expenses, by placing 11.8 million newshares at 85p. In that placing, FIH subscribed £2 million for 2,352,941 sharesresulting in a shareholding of 16,802,941 shares (18.31% of FOGL's enlargedshare capital). Following the sale on 21 February 2006 of 1,802,941 FOGLshares, FIH retains 15,000,000 shares (16.3% of FOGL's current issued sharecapital). David Hudd, the Executive Chairman of FIH, has been the Non executive DeputyChairman of FOGL since its admission to AIM. He subscribed for 250,000 shareson admission and for a further 50,000 shares in the May 2005 placing. On 21February 2006, he sold 100,000 shares at 135p and his remaining interest in theshare capital of FOGL comprises 200,000 shares and options over a further450,000 shares. This information is provided by RNS The company news service from the London Stock Exchange