Re Contracts
November 10 2003 - 1:01AM
UK Regulatory
RNS Number:8529R
Crown Corporation Limited
10 November 2003
10 November 2003
Crown Corporation wins major contracts in Argentina
- Value of over US$600m
Crown Corporation Limited ("Crown" or "the Company"), the active management
company which recently listed on the Alternative Investment Market (AIM: CCO),
announces today that it has exchanged multiple contracts with Alemarsa S.A.,
Raymon Cayetano Cardozo Goday and Magar S.A. Kaor S.A. and Lopsin S.A. for the
installation of waste management and water treatment infrastructure and other
construction projects to a total value at completion of approximately US$633
million, of which US$180 million will be expended on waste management,
approximately US$11 million on water treatment and approximately US$442 million
on construction.
The projects will be located in the Canuelas, Malvinas Argentinas, Tres de
Febrero and La Matanza municipalities of Buenos Aires. The construction works
are due to commence by July 2004 and involve the construction of over 14,000
dwellings, 9 industrial parks, 2 commercial centres, 3 complexes of municipal
buildings and 2 hospitals. In addition, 3 waste management treatment plants and
40 water purification systems are due to be delivered during the second half of
calendar year 2004.
It is intended that these contracts will be fulfilled largely by companies in
which Crown plans to take substantial equity interests, as part of its strategy
to restructure and turnaround underperforming businesses in the North American
marketplace. The award of these contracts, which represent a first phase in the
development of its business, means that Crown will be in a strong position to
improve the sales and marketing of its investee companies. It also highlights
an integral part of Crown's proposition to use its international contacts base
to generate new business for the companies in which it is going to take
substantial interests, particularly in emerging markets where there is the
potential for high growth.
Wolfgang K. Menzel, Chief Executive Officer of Crown, comments: "We are
delighted to have been chosen to enter into these contracts, which will
significantly enhance the reputation of any future investee company, as well as
providing essential services to Argentina as a whole. The attainment of these
contracts demonstrates the unique approach of Crown, which sets it apart from
traditional investment or venture capital firms, because it is an operational
company and will be able to generate new business for the companies in which it
invests. We believe that emerging markets, such as Argentina, offer excellent
growth opportunities for the sectors that we are targeting, as indicated in our
AIM Admission document."
Dr. Jean-Pierre Regli, Treasurer of Crown and a member of its Audit Committee,
comments: "Each contract that Crown Corporation has been awarded will be backed
by bank guarantees or similar arrangements which will provide a significant
level of protection against financial failure of counter-parties to the
contracts. The Company accordingly should have a very high level of certainty
that all payment obligations under the contracts will be honoured, which will
underpin Crown's ability to borrow against the receipts due under the contracts
should it wish to do so."
The award of the contracts illustrates the strength and international nature of
Crown's contact base and its ability to mobilize these contacts for the benefit
of the Company and its investee companies. Lambert Financial Investments
Limited, as a strategic adviser to Crown, has been instrumental in opening the
Latin American market and securing the contracts for Crown. Crown intends to be
highly active on behalf of the companies in which it invests, amongst over
things in the generation of new business on an ongoing basis.
Ends
For further information, please contact:
www.crowncorporation.com
Investor & Media Relations
Simon Robinson / Cathy Malins
Parkgreen Communications Ltd
Tel: +44 20 7287 5544
This information is provided by RNS
The company news service from the London Stock Exchange
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