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PAL Equatorial Palm Oil Plc

20.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Equatorial Palm Oil Plc LSE:PAL London Ordinary Share GB00BMF75608 ORD 0.2P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 20.00 19.50 21.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Equatorial Palm Oil plc Loan of up to $20.0m for Joint Venture Company (5414Z)

20/05/2019 10:00am

UK Regulatory


Equatorial Palm Oil (LSE:PAL)
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TIDMPAL

RNS Number : 5414Z

Equatorial Palm Oil plc

20 May 2019

20 May 2019

EQUATORIAL PALM OIL plc

("EPO" or the "Company")

Loan of up to $20.0m for Joint Venture Company

Equatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa announces today its 50 per cent. owned joint venture company, Liberian Palm Developments Limited ("LPD"), has entered into a loan agreement of up to $20.0m ("Loan Agreement") with KLK Agro Plantations Pte Ltd ("KLK Agro"), a wholly owned subsidiary of Kuala Lumpur Kepong Berhad ("KLK"), for the operations and funding for LPD (the "Loan").

The Loan will be used to continue with the next phase of growth of LPD and the key terms of the Loan are as follows:

   --      Amount - up to $20.0m which is unsecured 
   --      Term - 5 years from the date of the Loan Agreement, being 19 May 2019 
   --      Interest - 3-months USD LIBOR + 5 per cent per annum 
   --      Repayment - Loan principal (together with all accrued Interest due) on expiry of the Term 

The Loan is in addition to, and on the same terms as, the loans of US$20.5m, US$30.0m and US$30.0m provided by KLK Agro, announced on 27 January 2015, 5 September 2016 and 12 October 2017 respectively (the "Existing Loans"), save for the date of maturity being 19 May 2024. The Existing Loans, which have now been fully drawn down and remain outstanding, fall due on 25 January 2020 save for the loan as announced on 12 October 2017 which falls due on 10 October 2022. The Loan can be drawn down by LPD in line with its operational funding requirements and subject to the consent of KLK Agro. The Company is in ongoing discussions with KLK regarding the Existing Loans which mature in January 2020.

Related Party Transaction

KLK (through its wholly owned subsidiary KL-Kepong International Limited) currently holds ordinary shares in EPO representing approximately 62.86 per cent. of the issued share capital of the Company. In addition, KLK Agro also currently holds 50 per cent. of the issued share capital of LPD. Accordingly, the Loan Agreement is classified as related party transaction under the AIM Rules for Companies. Michael Frayne and Geoffrey Brown, being the non-related directors of EPO for the purposes of this transaction, consider, having consulted with the Company's nominated adviser, Strand Hanson Limited, that the terms of the Loan Agreement are fair and reasonable insofar as the Company's shareholders are concerned.

- END -

For further information, please visit www.epoil.co.uk or contact:

 
 Equatorial Palm Oil plc                        +44 (0) 207 268 
  Geoffrey Brown (Executive Director)            4874 
 
   Strand Hanson Limited (Nominated Adviser)    +44 (0) 20 7409 
   James Harris / James Bellman                  3494 
 
   Mirabaud Securities LLP (Broker)             +44 (0) 20 7484 
   Peter Krens                                   3510 
 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014.

Notes to editors:

Equatorial Palm Oil plc is an AIM listed crude palm oil developer and producer with palm oil estates in Liberia, West Africa. The Company was founded in 2005 and is focused on becoming a global, sustainable producer of high quality palm oil to regional and international markets.

With a significant land position in Liberia through its operating subsidiary LPD, the Company is geographically well positioned to serve the international and regional markets and is committed to making a positive impact on the communities in which it operates through investment in local schools, health clinics, housing and infrastructure.

The Company's largest shareholder and 50:50 joint venture partner in LPD is KLK. KLK is one of the largest palm oil producers in the world and the Company will greatly benefit from their many years of expertise in oil palm development.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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(END) Dow Jones Newswires

May 20, 2019 05:00 ET (09:00 GMT)

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