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EPIC Ediston Property Investment Company Plc

68.80
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Ediston Property Investment Company Plc LSE:EPIC London Ordinary Share GB00BNGMZB68 ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 68.80 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Ediston Property Inv Comp PLC Increase in dividend and proposals for acquisition (6151W)

15/11/2017 2:48pm

UK Regulatory


TIDMEPIC

RNS Number : 6151W

Ediston Property Inv Comp PLC

15 November 2017

 
 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION 
  IN WHOLE OR IN PART, IN OR INTO OR FROM ANY JURISDICTION 
  WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF 
  THE RELEVANT LAWS OF SUCH JURISDICTION IN PARTICULAR 
  THE UNITED STATES, CANADA, AUSTRALIA, THE REPUBLIC 
  OF SOUTH AFRICA AND JAPAN 
 This announcement is an advertisement and not 
  a prospectus. This announcement does not constitute 
  or form part of, and should not be construed 
  as, any offer for sale or subscription of, or 
  solicitation of any offer to buy or subscribe 
  for, any securities in Ediston Property Investment 
  Company PLC (the "Company") or securities in 
  any other entity, in any jurisdiction, including 
  the United States, nor shall it, or any part 
  of it, or the fact of its distribution, form 
  the basis of, or be relied on in connection with, 
  any contract or investment decision whatsoever, 
  in any jurisdiction. This announcement does not 
  constitute a recommendation regarding any securities. 
  Any investment decision must be made exclusively 
  on the basis of the final prospectus published 
  by the Company and any supplement thereto. 
 15 November 2017 
                         INCREASE IN DIVID 
                                  AND 
              RECOMMED PROPOSALS FOR THE ACQUISITION OF 
                            A NEW PORTFOLIO 
 Increase in dividend 
 It is the Board's intention to increase the annualised 
  dividend by 4.5 per cent. to 5.75 pence per share, 
  in the absence of unforeseen circumstances, commencing 
  with the dividend in respect of the month ending 
  31 January 2018 which will be paid in February 
  2018. In determining the level of future dividends, 
  the Board will seek to ensure that any dividend 
  level is sustainable over the medium term taking 
  into account any expected increase in dividend 
  cover and the projected income performance of 
  the Company. 
 The Acquisition 
 Further to the announcement made by the Company 
  on 6 October 2017, the Board is pleased to announce 
  that the Company has entered into a conditional 
  acquisition agreement with the Stadium Group 
  in relation to the acquisition of a new portfolio 
  of four retail warehouse parks (the "Acquisition") 
  with an aggregated market value of approximately 
  GBP144 million (the "New Portfolio"). The New 
  Portfolio comprises four high quality, well located 
  UK retail warehouse parks and the Acquisition 
  will result in a substantial increase in the 
  size of the Company's existing portfolio to approximately 
  GBP317.6 million. 
  The Board believes that the Acquisition will 
  introduce a number of asset management opportunities 
  which should enhance returns to shareholders, 
  being consistent with the Company's and manager's 
  investment style and income strategy. The manager 
  believes that there is credible growth potential 
  within the New Portfolio and scope to improve 
  the income stream of each new retail warehouse 
  park. 
 The Acquisition remains conditional, inter alia, 
  upon minimum proceeds of approximately GBP37 
  million being raised under a share issue and 
  shareholders voting in favour of the Acquisition 
  and the issue of new shares on a non pre-emptive 
  basis. The proposals are expected to complete 
  in early December 2017 upon the admission of 
  the new shares issued to the Official List of 
  the UK Listing Authority and to trading on the 
  Main Market of the London Stock Exchange. The 
  acquisition agreement will terminate in the event 
  that these conditions are not satisfied by 22 
  December 2017. 
       The aggregate amount payable on completion of 
        the Acquisition in respect of the New Portfolio 
        will be approximately GBP144 million. The Company 
        will fund the Acquisition by a combination of: 
         *    cash from the Company's existing cash resources; 
 
 
 
         *    a new loan facility (the "New Facility") the Company 
              has arranged with Aviva Commercial Finance Limited 
              ("Aviva"); 
 
 
 
         *    the proceeds of an open offer to existing 
              shareholders, an initial placing, offer for 
              subscription and intermediaries offer (the "Share 
              Issue"); and 
 
 
 
         *    the issue of new ordinary shares to the Stadium Group 
              (the "Vendor Issue"). 
 A newly established subsidiary of the Company 
  has entered into a new facility agreement with 
  Aviva conditional on, inter alia, the completion 
  of the Acquisition. The New Facility is in addition 
  to the Group's existing borrowings and consists 
  of a 10 year term loan facility of up to approximately 
  GBP54 million. Although as part of the Acquisition 
  the Board intends to increase the Group's borrowings, 
  the Group's gearing is expected to remain at 
  broadly 30 per cent. of gross assets. Depending 
  on the extent of the proceeds from the Share 
  Issue, gearing may be increased to 35 per cent., 
  being the maximum limit under the Company's investment 
  policy, for a period but this is not expected 
  to be the gearing level for the Group over the 
  longer term. 
 The Share Issue and the Vendor Issue 
 As previously announced, in order to fund the 
  Acquisition and to provide for future portfolio 
  purchases, the Board is proposing to raise additional 
  equity share capital by offering up to 150 million 
  new shares, in aggregate, under the Share Issue 
  and the Vendor Issue. 
 The Share Issue will be structured to give priority 
  to existing shareholders who want to participate 
  in the fundraising, but also to provide the opportunity 
  for new investors to subscribe, including from 
  the retail investment community through the offer 
  for subscription and the intermediaries offer. 
  The Stadium Group has agreed to subscribe for 
  a maximum of, in aggregate, GBP36.5 million of 
  new ordinary shares which will be subject to 
  a 12 month lock-in, whereby disposals can only 
  be made (subject to customary exceptions) with 
  the consent of the Company, and to orderly marketing 
  arrangements for a further 12 months thereafter. 
 If the Share Issue does not proceed, the Acquisition 
  will not proceed and no funds will be drawn down 
  under the New Facility. The Company continues 
  to receive positive messages from shareholders 
  and potential investors, both in respect of voting 
  in favour of the proposals and subscribing for 
  new shares under the Share Issue and remains 
  confident of the success of the proposals. 
 Further documentation 
 The Company will publish a circular to convene 
  a general meeting of the Company to approve the 
  proposals and a prospectus shortly in respect 
  of the issue of new shares which will have further 
  details of the Acquisition, the Share Issue and 
  a subsequent 12 month placing programme. A detailed 
  analysis of the Company's existing portfolio 
  and its portfolio following completion of the 
  Acquisition will be included in the prospectus. 
 William Hill, Chairman of Ediston Property Investment 
  Company plc commented: 
 "The Manager has made consistent good progress 
  in improving the company's income profile and 
  it is good news that we are today able to announce 
  an increase in the dividend level. I am delighted 
  with the progress of this property transaction 
  and consider these proposals to be an important 
  next step in the development of the Company. 
  I am also encouraged with the discussions we 
  have had to date with both our existing shareholders 
  and potential new investors in relation to the 
  equity raising to support these proposals. The 
  Board believes that acquiring the New Portfolio 
  will be accretive to the level of dividend cover 
  and will provide a number of asset management 
  opportunities which should enhance the income 
  profile and the capital value of the Group's 
  property assets." 
 For further information please contact: 
 Ediston Properties Limited 
  Danny O'Neill 
  Calum Bruce                                    0131 225 5599 
 Canaccord Genuity Limited 
  Will Barnett 
  Robbie Robertson                               020 7523 8000 
 Notes: 
 The information contained within this announcement 
  is deemed by the Company to constitute inside 
  information as stipulated under the Market Abuse 
  Regulation (EU) No. 596/2014. Upon the publication 
  of this announcement via Regulatory Information 
  Service this information is now considered to 
  be in the public domain. 
 The information in this announcement is for background 
  purposes only and does not purport to be full 
  or complete. No reliance may be placed for any 
  purpose on the information contained in this 
  announcement or its accuracy or completeness. 
  The material set forth herein is for information 
  purposes only. 
 Canaccord Genuity Limited ("Canaccord") is authorised 
  and regulated in the United Kingdom by the Financial 
  Conduct Authority. Canaccord is acting exclusively 
  for the Company and for no-one else in relation 
  to the Share Issue and the placing programme 
  and will not regard any other person as its client. 
  Apart from the responsibilities and liabilities, 
  if any, which may be imposed on Canaccord by 
  the Financial Services and Markets Act 2000 or 
  the regulatory regime established thereunder, 
  Canaccord will not be responsible to anyone other 
  than the Company for providing the protections 
  afforded to its clients or for advising any other 
  person in relation to the Share Issue, the placing 
  programme, or any transaction contemplated in 
  or by the prospectus to be published by the Company. 
  Dickson Minto W.S. is authorised and regulated 
  in the United Kingdom by the Financial Conduct 
  Authority. Dickson Minto W.S. is acting exclusively 
  for the Company and for no-one else in relation 
  to the share issue and the placing programme 
  and will not regard any other person as its client. 
  Apart from the responsibilities and liabilities, 
  if any, which may be imposed on Dickson Minto 
  W.S. by the Financial Services and Markets Act 
  2000 or the regulatory regime established thereunder, 
  Dickson Minto W.S. will not be responsible to 
  anyone other than the Company for providing the 
  protections afforded to its clients or for advising 
  any other person in relation to the share issue, 
  the placing programme, or any transaction contemplated 
  in or by the prospectus to be published by the 
  Company. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

November 15, 2017 09:48 ET (14:48 GMT)

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