Director loan and update on transaction

 

TIDMMAP 
 
RNS Number : 4511O 
MG Capital PLC 
06 March 2009 
 

 
 
 
 
MG Capital plc 
("MG Capital" or "the Company") 
 
Director Loan and Update on Transaction 
 
 
 
 
The Company announces that its Chairman, Mr. Peter Hannen, has agreed to lend to 
the Company the sum of GBP75,000 ("the Loan"). The Loan is unsecured and the 
Company may elect to repay the Loan or part of it at any time. The principal 
amount of the Loan outstanding from time to time will carry interest at the rate 
of 6 per cent per annum. The Loan is repayable on receipt of one month's notice 
from the lender. 
 
 
With the exception of Mr Hannen, who is involved in the transactions as a 
related party, the directors of MG Capital consider, having consulted with the 
Company's nominated adviser, that the terms of the transactions are fair and 
reasonable insofar as its shareholders are concerned. 
 
 
MG Capital's Annual Report and Accounts for the year ended 30 June 2008 refers 
to the Company's role in a US$20 million capital raising for an Australian 
company involved in telecommunications in China. A 5% fee for this work was 
expected once approval for the investment was received from the client company's 
shareholders. However, although the transaction did indeed receive this 
approval, the investor has defaulted on the investment and as a result this fee 
has not yet been received. The capital raising process is now again underway, 
and if a suitable investor is found a fee for this would be payable, however the 
quantum is dependent on the level of funding which can be achieved, with this 
amount not yet being determined due to current market conditions. 
 
 
- Ends - 
 
 
For further information, please contact: 
+-------------------------------------------+----------------------------+ 
| MG Capital plc                            |                            | 
+-------------------------------------------+----------------------------+ 
| Charles Fowler                            |  Tel: [phone] | 
+-------------------------------------------+----------------------------+ 
 
 
+-------------------------------------------+----------------------------+ 
| Nominated Adviser:                        |                            | 
| Grant Thornton UK LLP                     |                            | 
+-------------------------------------------+----------------------------+ 
| Gerry Beaney/Fiona Kindness               |  Tel: [phone] | 
+-------------------------------------------+----------------------------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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