| Thu 17 Jun 2010, 13:00 | | IPS - IPSA Group Plc - Trading update and sale of shares by IPC |
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IPS
IPSA
IPS - IPSA Group Plc - Trading update and sale of shares by IPC
IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration Number 5496202)
AIM Share Code IPSA ISIN GB00BOCJ3F01
JSE Share Code IPS ISIN GB00BOCJ3F01
("IPSA" or "the company")
Trading update and Sale of shares by IPC
Newcastle generation plant
IPSA PLC (AIM: IPSA), the developer, owner and operator of power generation
capacity in Southern Africa, announces that it has arranged short term loan
facility of GBP300,000 to allow its generation plant in Newcastle, South Africa,
to restart operations in order to supply electricity during the remainder of the
month of June under a short term power purchase agreement with Eskom Holdings
Limited ("Eskom"). Subject to obtaining the necessary approvals for the loan,
the plant is expected to generate electricity for 9 days.
The GBP300,000 loan facility was entered into with Sterling Trust Limited, a
private investment company based in the United Kingdom ("Sterling Trust"), on 16
June 2010, at a fixed annualised rate of 12 per cent. and is repayable within 90
days of drawdown. Sterling Trust will be repaid the capital and interest out of
the revenues received at the Newcastle plant. Sterling Trust will also receive
warrants to subscribe for 300,000 new ordinary shares in IPSA ("Ordinary
Shares") at a price of 15 pence per share, exercisable within 24 months.
As announced in the Company`s recent interim results, IPSA is in negotiations
with potential South African lenders for a refinancing of up to USD20 million of
its own inter-company funding of the Newcastle plant.
Sale of shares by IPC
In conjunction with the Newcastle loan, on 14 June 2010, Sterling Trust acquired
6,125,000 Ordinary Shares at 12p per share (6.45% of the Company) from the
Independent Power Corporation PLC, a company controlled by Peter Earl, the
Company`s CEO. In addition, IPC placed a further 2,000,000 Ordinary Shares off-
market at 12p per share with the adult children of Peter Earl, leaving IPC with
no further shareholding in the Company. However, IPC continues to lend to IPSA
and, in addition, has conditionally acquired one of IPSA`s four gas turbines
subject to obtaining necessary project approvals and financing, as previously
announced.
Following this sale of shares by IPC, Peter Earl`s remaining interest in the
Company is held indirectly through 5,010,000 Ordinary Shares (5.27% of the
Company) which are held by his wife, Emma Earl.
Peter Earl commented: "I am pleased that our Newcastle plant can be brought into
operation so quickly in order to make a small contribution towards relieving the
strain on the South African electricity system at this critical time. It is
unfortunate for me personally that liquidity constraints in IPC have forced the
sale of this interest. However, I am confident of the ongoing support of
Sterling Trust for the Company and I am looking forward to developing this
relationship further".
London
17 June 2010
For further information contact:
Peter Earl, CEO, IPSA Group PLC: +44 (0)20 7793 5615
John Llewellyn-Lloyd / Harry Stockdale, +44 (0)20 7456 9191
Execution Noble & Company Ltd:
Riaan van Heerden, PSG Capital (Pty) +27 21 887 9602
Ltd:
Date: 17/06/2010 13:00:03 Produced by the JSE SENS Department.
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