Equity Investment

    RNS Number : 7506H
  Huy PLC
  07 November 2008
   

    Huy plc (the "Company")

    Possible Equity Investment


    On 8 May 2008 shareholders approved the disposal of Blue Star Mobile Limited and Blue Star Sport Limited ("Disposal"). The Company
announced at that time the following statement:  


    "Business going forward

    Following the Disposal, the Company will have no trading business and therefore under the AIM rules it must seek the consent of
Shareholders for the investment strategy.

    It is the view of the Independent Directors that going forward the only strategy for the Company is to return the sale proceeds (less
the costs of sale, ongoing professional advisers' fees and the ongoing maintenance of the Company as an AIM listed plc) of the Target
Companies to the shareholders.

    The main factors in reaching this conclusion are that there are limited financial resources and consequently time to search for or
develop a new venture and that to do so may unnecessarily erode what funds remain.

    If the Company does not make a reverse takeover within six months of the sale of the operating companies, the Independent Directors will
seek to return residual cash to shareholders through a Members' Voluntary Liquidation to be approved at an EGM. 

    At the same time that the Company seeks shareholder approval for the Members' Voluntary Liquidation, the Company shall also seek
shareholder approval for the Company's listing on AIM to be cancelled. Cancellation would be effective from the business day following the
date of the EGM. If the Members' Voluntary Liquidation and cancellation of the Company's listing on AIM are not approved by Shareholders,
the Company will be required to implement an investing strategy under the AIM Rules, for which the Company must seek the consent of
Shareholders at an EGM to be held shortly after the previous EGM. If the Members' Voluntary Liquidation is approved by Shareholders, but
cancellation of the Company's listing on AIM is not approved, the Company's listing on AIM will be suspended from the business day following
the date of the EGM. The Company would remain suspended for six months, after which its listing on AIM would be cancelled. The Independent
Directors of the Company do not have any experience in sourcing companies to acquire cash shells (as the Company will be classified after the Resolutions are passed) nor in looking for reverse takeover
targets. They will, however, work with their advisers in trying to source potential targets."


    New Proposals

    The Company is pleased to annouce that it is in negotiations regarding an equity investment into the Company. This equity investment
will be subject to shareholder approval. The Company will make a full announcement once the terms of the equity investment have been
agreed.

    Due to the proposed equity investment the Company no longer intends to seek shareholder approval for a Members' Voluntary Liquidation.
Shareholders should though be aware that under the AIM rules the Company is still deemed to be an investing company and has until 8 May 2009
to make a reverse takeover. If it does not do so by this date its shares will be suspended for a period of six months and thereafter
cancelled.  The Company is continuing to seek acquisition opportunities and will keep shareholders updated. 


    Enquiries:

    Blue Star Mobile:
    David Cromwell                   Tel: [phone]

    Seymour Pierce Ltd:
    John Depasquale                 Tel: [phone]


This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
MSCILFIRLALDIIT