6 Nov 2008 07:00
06 November 2008
Trikona Trinity Capital PLC
('Trikona TC' or 'the Company')
Transaction Update
Trikona TC (AIM: TRC) announces that due to the ongoing issues surrounding the global credit markets and recent corporate activity, its strategic partner, SachsenFonds Holdings GmbH ("SF"), has requested an extension period of up to 90 days to complete the first tranche of its third transaction with Trikona TC.
The transaction, which was due to close by 17 October 2008, was initially delayed by SF pending the outcome of an extraordinary general meeting which has now been withdrawn.
As previously announced, the Company will divest equity share holdings in three of its off-shore entities to SF: Development Project 1, 2 and 10 for an initial consideration of £32.05 million, creating a gain of 126%. In the second tranche, due to close by 31 March 2009, SF will further acquire up to £16.03 million in the three entities. As Trikona TC has complied with all its contractual obligations outlined on 15 September 2008, the Company remains confident the transaction will complete.
In December 2007, the Company completed its first divestment to SF for an aggregate sale price of £32.11 million, and in June 2008, Trikona TC announced a two-part transaction to divest further assets to SF for an aggregate sale price of £54.10 million, together with a total co-investment of £20.04 million on a 55:45 basis (SF:Trikona TC). This third transaction brings the total proceeds from the three portfolio sales to SF to over £130 million with an average cash-on-cash gain of 117%.
Michael Cassidy, Chairman of Trikona Trinity Capital, said: "The combined effects of current market conditions and recent corporate activity relating to Trikona TC have led to a delay in closing this third transaction. We are confident the transaction will complete during the revised time period and that our strong partnership with SF will continue to create value for our shareholders."
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Enquiries:
Trikona Trinity Capital PLC +44 207 148 5360
Michael Cassidy, Chairman
Trikona Capital +44 207 148 5360
Sally Lewis, Director of Investor Relations
Bell Pottinger Corporate & Financial +44 207 861 3232
Mike Davies/ Sarah Williams
Numis Securities +44 207 260 1000
NOMAD: Lee Aston, Head of Corporate Finance
Corporate Broking: Charles Farquhar
Fairfax I.S. PLC +44 207 598 5368
Paul Richards, Head of Corporate Finance
Trinity Capital (TRC)