Equatorial Palm Oil plc Roll Over of Loan to Joint Venture Company (3809G)
November 05 2018 - 8:30AM
UK Regulatory
TIDMPAL
RNS Number : 3809G
Equatorial Palm Oil plc
05 November 2018
5 November 2018
EQUATORIAL PALM OIL plc
("EPO" or the "Company")
Roll Over of Loan to 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 that it has agreed to extend the maturity
of its US$2,00,000 loan to its 50 per cent. owned joint venture
company, Liberian Palm Developments Limited ("LPD"), announced on 7
November 2013 for the funding or LPD's operations (the "Loan"). The
maturity date for the Loan, for which US$2,938,656 including
accrued interest is outstanding, will be extended from 7 November
2018 to 6 November 2023 (the "Loan Extension"). The Loan Extension
has been effected by a deed of amendment and all other terms of the
Loan remain unchanged.
The key terms of the loan are as follows:
-- Term - 5 years expiring on 6 November 2023
-- Interest - USD LIBOR + 4 per cent per annum or 8 per cent per annum, whichever is the higher
-- Repayment - Loan principal (together with all accrued
Interest due) on expiry of the Term or earlier at the election of
LPD
The total liabilities owed by LPD to EPO as at 1 November 2018
amount to US$6,192,676.04.
Related Party Transaction
KLK (through its wholly owned subsidiary KL-Kepong International
Limited) currently holds 50 per cent of the issued share capital of
LPD and ordinary shares in EPO representing approximately 62.86 per
cent. of the issued share capital of the Company. Accordingly, LPD
is a related party to the Company as defined in the AIM rules for
Companies and the Loan Extension is classified as related party
transaction under the AIM Rules for Companies. Michael Frayne being
the non-related director of EPO for the purposes of this
transaction (Geoffrey Brown serves on the Board of LPD), considers,
having consulted with the Company's nominated adviser, Strand
Hanson Limited, that the terms of the Loan Extension 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) 20 7016
Geoffrey Brown (Executive Director) 9885
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
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.
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.
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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