B.S.D. Crown Ltd Parent Company Announcement - Share Pledge

 
TIDMBSD 
 
BSD Crown Ltd. (LSE: BSD) 
 
                                (the "Company") 
 
                                Company Update 
 
                                              Ramat Gan, Israel, 4 January 2017 
 
                  Parent Company Announcement - Share Pledge 
 
The Company has received information to suggest that Israel 18 BV ("Israel 18") 
has granted security over certain Company shares it beneficially owns (5.54% of 
the total issued and outstanding share capital of the Company (excluding 
dormant shares)) (the "Pledge") in favour of Meinl Bank in Austria (the "Bank 
"), as security for the provision of certain loans provided to Israel 18 (the " 
Loan"). The Loan and the Pledge were made previous to the date on which Mr. 
Gregory Gurtovoy became the controlling shareholder in Israel 18. 
 
On 3 January 2017 the Company received information to suggest that the Bank 
wished to exercise the Pledge and register itself as the owner of the shares 
over which the Pledge was taken. The Bank has claimed that the Loan is in 
default however no supporting documents have been presented to the Company. 
Subsequently to receipt of the above information, the Bank has clarified its 
position that it is not currently acting to enforce its security interest over 
such shares but rather considering the process for doing so. 
 
Based on the information provided to the Company, Israel 18 beneficially owns 
Company shares representing approximately 19.01% of the total issued and 
outstanding share capital of the Company (excluding dormant shares). BGI 
Investments (1961) Ltd. ("BGI") beneficially owns Company shares representing 
approximately 24.65% of the total issued and outstanding share capital of the 
Company (excluding dormant shares) and controls in aggregate, directly and 
through proxies from Israel 18, approximately 43.65% of the voting rights in 
the Company (excluding dormant shares). 
 
The Company is seeking clarifications from Israel 18 BV and from the Bank and 
will provide further updates in due course. 
 
Enquiries: 
 
Gregory Gurtovoy, Chairman of the Board: [e-mail] 
 
 
 
END 
 

(END) Dow Jones Newswires

January 04, 2017 04:45 ET (09:45 GMT)