| Fri 2 Dec 2011, 14:00 | | IPS - IPSA Group Plc - Extension re sale of turbines |
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IPS
IPSA
IPS - IPSA Group Plc - Extension re sale of turbines
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")
EXTENSION RE SALE OF TURBINES
IPSA Group PLC (AIM:IPSA), the developer, owner and operator of power
generation capacity in Southern Africa, announces an update in respect of
the conditional sale of its four Siemens Westinghouse 701 DU gas
turbines.
Further to the announcement on 20 July 2011 (the "July Announcement")
that the Company has entered into two turbine sale contracts with Bright
Day Pte Limited ("Bright Day") and with Bridgehouse Capital Limited
("Bridgehouse"), the Company announces a delay in completion of the sales
of the turbines. The new sales contracts with Bright Day and a member of
the Bridgehouse investment group are substantially on the same terms
described in the July Announcement.
IPSA also confirms that it has executed a deed of trust whereby all
proceeds from these two agreements, including the deposits, will be paid
into a trust account to be operated by the Company`s two key creditors,
Standard Bank PLC and Turbocare SpA. The contracts have been approved by
both of these entities.
As a result of the delays to these negotiations and in respect of the
buyers` projects, both transactions are now expected to complete on or
before 31 January 2012, a few months later than expected.
In addition, Bright Day has agreed to pay a further deposit of USD2m, and
Bridgehouse will effect their agreement through an associated company,
Lezayre Holdings Limited. The buyers` initial cash deposits of USD2m
each have been transferred into the trust account, leaving an aggregate
balance of USD60 million to be received at completion from the two
separate buyers.
The Company confirms that its working capital position will remain
extremely tight until both sales have completed, and additional working
capital for the intervening period will be required to pay operating
expenses and repay the Loan Notes due on 31 July 2011 unless their
repayment period is extended.
For further information contact:
Phil Metcalf, CEO, IPSA Group PLC +44 (0)20 7793 5600
John Llewellyn-Lloyd / Harry Stockdale, Execution Noble & Company Ltd
+44 (0)20 7456 9191
Riaan van Heerden,PSG Capital (Pty) Ltd +27 (0)21 887 9602
Harry Ansell / James Joyce W H Ireland Ltd +44 (0)20 7220 1666
London
2 December 2011
Date: 02/12/2011 14:00:07 Produced by the JSE SENS Department.
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