Galleon Holdings PLC Termination of Discussions re Proposed Transaction (8950G)

TIDMGON

RNS Number : 8950G

Galleon Holdings PLC

12 May 2014

12 May 2014

Galleon Holdings PLC

("Galleon" or the "Company")

Termination of Discussions Regarding Proposed Transaction

Galleon announces that, further to its announcement of 12 November 2013, it has terminated discussions regarding the potential acquisition ("Acquisition") of at least 85 per cent. of the issued share capital of Aktobe Steel Production LLP ("Aktobe") (the "Proposed Transaction") because of delays in advancing the pertinent documentation, diligence and a number of commercial issues. In spite of a price having been agreed in principle for the Proposed Transaction, negotiations were at an early stage when the announcement of 12 November was made, and in spite of the Company's best efforts, there has been no substantive progress since then. As a result, the Company has not drawn down any monies under the loan agreement entered into with the sellers of Aktobe in connection with the Proposed Transaction, and has terminated that loan agreement.

Galleon is considering a number of other potential investments, and will keep the market updated as appropriate. Given that the discussions regarding the Proposed Transaction and the loan agreement have terminated, publication of the Company's report and accounts for the year ended 30 September 2013 remains the only reason for suspension of trading in the Company's shares to continue. Publication of the report and accounts is expected shortly, and further announcements will be made in due course.

Enquiries

 
 Galleon Holdings plc 
  Ashar Qureshi                    [phone] 
 Nominated Adviser 
  Cairn Financial Advisers LLP 
  James Caithie / Avi Robinson     [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCATMATMBIBBII