Reconstruction Capital II Ltd Disposal of Top Factoring Group (7966C)
April 20 2017 - 1:01AM
UK Regulatory
TIDMRC2
RNS Number : 7966C
Reconstruction Capital II Ltd
20 April 2017
20 April 2017
Reconstruction Capital II Limited
Disposal of Top Factoring Group
Reconstruction Capital II Ltd ("RC2" or the "Company" and
together with its subsidiaries, the "Group" ), a closed-end
investment company incorporated in the Cayman Islands admitted to
trading on the AIM market of the London Stock Exchange, today
announces that further to the announcement made on 3 April 2017
relating to the disposal of the Top Factoring Group ("Top
Factoring"), made up of Top Factoring S.A, a Romanian receivables
collection company and the whole of the non-performing loan book
held by the Company's wholly-owned subsidiary Glasro Holdings
Limited ("Glasro"), the Top Factoring Group has been acquired by
Intrum Justitia AB.
Accordingly, RC2 received yesterday a total of EUR 12.83 million
(after the repayment of Glasro's bank debts), and is due to receive
a further EUR 0.28 million on 4 May 2017. Accordingly, the Company
will have received a total consideration of EUR 13.11 million,
which, excluding any sundry liabilities, M&A fees and tax due
by Glasro on the disposal, represents a gain of EUR 1.83 million on
the book value of its holding in the Top Factoring Group as at 28
February 2017, and, including dividends received during the holding
period of this investment, a profit of EUR 16.29 million on the
total cost of its investment.
After paying M&A advisory fees, and taxes and sundry
liabilities of Glasro due on the disposal, amounting to
approximately EUR 1.25 million in total, the Group will use EUR
2.82 million of the proceeds of the sale to make an investment in
Telecredit S.A., a Romanian non-banking financial institution that
provides consumer loans, and the Company will use EUR 1.13 million
to repay a loan it received from Ion Florescu as detailed in the
announcement dated 27 March 2017. The Board has yet to conclude on
the use of the balance of the cash proceeds and will advise
shareholders in due course.
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014, and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
For further information, please contact:
Reconstruction Capital II Limited
Ion Florescu/Anca Moraru
Tel: +40 21 3167680
Grant Thornton UK LLP (Nominated Adviser)
Philip Secrett/Carolyn Sansom
Tel:+ 44 (0) 20 7383 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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