| Fri 16 Feb 2007, 10:35 | | IPS - IPSA Group Plc - Issue of Equity |
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IPS
IPSA
IPS - IPSA Group Plc - Issue of Equity
IPSA GROUP PLC
(Incorporated and registered in England and Wales)
(Registration number 5496202)
AIM Share Code: IPSA ISIN: GB00B0CJ3F01
JSE Share Code: IPS ISIN: GB00B0CJ3F01
IPSA Group PLC ("IPSA" or "the Company")
Issue of Equity
IPSA, the independent power plant developer with operations in southern Africa,
which is quoted on AIM and has a secondary listing on ALTx, announces that it is
raising GBP7,500,000 (approximately South African Rand (ZAR) 105,853,891),
before expenses, by way of a placing for cash (the "Placing") of 10,000,000 new
ordinary shares (the "Placing Shares") of 2 pence each.
The proceeds of the Placing will strengthen the Company`s balance sheet whilst
it is in negotiations to acquire a number of turbines as part of the equipment
required for the first 500MW of generating capacity due to be installed for the
Coega Fast Track Project. The funds will also assist in meeting the Company`s
working capital requirements over the coming year.
The Placing, to new and existing shareholders in South Africa and the United
Kingdom, is at a price of 75 pence per ordinary share, which is at a discount of
11.8 per cent to the mid market closing price on 14 February 2007. The Placing
Shares will represent 13.14 per cent of the enlarged issued share capital. The
Placing Shares will be allotted out of the Company`s existing share allotment
authorities and will be admitted to trading on both AIM and ALTx. Admission of
the Placing Shares is conditional on the receipt of exchange control approval by
the South African Reserve Bank.
Following the Placing, IPSA will have 76,129,469 fully paid shares in issue
trading on both AIM and ALTx. ALTx is the alternative exchange of the JSE
Limited in South Africa. The new ordinary shares will rank pari passu in all
respects with existing ordinary shares.
Stephen Hargrave, chairman of IPSA, said:
"We are delighted in this vote of confidence from investors in the UK and South
Africa, and are particularly pleased to welcome further significant investment
from leading South African institutions."
Peter Earl, CEO of the Company, said:
"We are very pleased to be deepening our relationship with key institutions in
both South Africa and UK as the Company looks to develop its pipeline of
projects in South Africa.
This Placing also puts the Company in a strong negotiating position as we seek
to finalise the acquisition of turbines and full financing of the Coega Fast
Track Project."
For further information please contact:
Peter Earl, CEO, IPSA Group plc 020 7793 7676
John Llewellyn-Lloyd, Noble & Company Limited 020 7763 2200
Allan Piper, First City Financial 07736 064982
020 7436 7486
16 February 2007
Sponsor
Standard Bank
AIM nominated advisor
Noble & Company Limited
Date: 16/02/2007 10:35:00 Produced by the JSE SENS Department.
