Aseana Properties Limited Aseana First Distribution Update (3044C)
October 15 2015 - 2:00AM
UK Regulatory
TIDMASPL
RNS Number : 3044C
Aseana Properties Limited
15 October 2015
15 October 2015
Aseana Properties Limited
("Aseana" or the "Company")
First Distribution Update
Aseana Properties Limited (LSE: ASPL), a property developer in
Malaysia and Vietnam, listed on the Main Market of the London Stock
Exchange, today provides an update on its planned redemption.
On 22 May 2015, the Company published a circular regarding the
future of the Company ("May 2015 Circular"), stating that the Board
and Ireka Development Management Sdn. Bhd. (the "Manager") are
committed to realising the Company's assets in a controlled,
orderly and timely manner with a view to achieving a balance
between returning cash to Shareholders and maximising the
realisation value of the Company's investments. The proposals
regarding the future of the Company received Shareholder approval
on 22 June 2015. On 7 August 2015, the Company published a second
circular ("EGM Circular"), regarding the introduction of a
compulsory redemption mechanism to return cash to Shareholders,
which received shareholder approval on 27 August 2015.
In the EGM Circular, the Company stated it anticipated making a
first distribution in Q3 2015 ("First Distribution"), subject to
lenders' consents, the receipt of confirmatory certificates from
the Company's reporting accountants and/or auditors to support the
Directors' statement of solvency and any necessary Shareholder
authorities, and that Board intended to make distributions of not
less than US$20 million in 2015.
On 27 August 2015, the Manager submitted applications for the
aforementioned lenders' consents over a First Distribution of US$10
million, which were expected to be granted before the end of
September. As lenders' consents were required for the introduction
of the compulsory redemption mechanism to return cash to
Shareholders and these were received in a timely manner in earlier
applications, it was not anticipated that there would be any delay
in receiving these consents for the First Distribution. However, at
the time of this announcement, the consents from certain of the
lenders for the First Distribution remain outstanding. For the
avoidance of doubt, the Company does not intend to make application
for consents for a second distribution whilst consents for the
First Distribution are outstanding and as such it is unlikely that
the Company will be able to make a second distribution in 2015. In
this event, the Company intends to make the second distribution at
the earliest possible date in 2016, subject to obtaining the
requisite consents and confirmatory certificates.
Over the past few months, the economic condition and outlook in
Malaysia have both deteriorated rapidly. Business confidence and
investment sentiments are poor caused by among others, low oil and
commodity prices, and uncertainties over weakening of Malaysian
Ringgit against US Dollars and other major currencies. It is the
Manager's view that this has affected the lenders' ability to
approve the applications for consent in a timely manner. The
Manager continues to liaise with the lenders with the view to being
granted the requisite consents at the earliest opportunity.
The Board and the Manager emphasise they are strongly committed
to returning cash to Shareholders and the Board intends to make the
First Distribution as soon as the lenders' consents are received
and the other conditions described above are met. The application
for second distribution will be made as soon as practically
possible after the First Distribution. The Company will provide
Shareholders with a further update on the situation at the earlier
of receiving the outstanding consents or at the end of first week
of November.
For further information:
Aseana Properties Limited Tel: 603 6411 6388
Chan Chee Kian Email: cheekian.chan@ireka.com.my
N+1 Singer Tel: 020 7496 3000
James Maxwell / Liz Yong
(Corporate Finance)
Sam Greatrex (Sales)
Tavistock Tel: 020 7920 3150
Jeremy Carey / James Verstringhe Email: jcarey@tavistock.co.uk
Notes to Editors:
London-listed Aseana Properties Limited (LSE: ASPL) is a
property developer investing in Malaysia and Vietnam.
Ireka Development Management Sdn Bhd ("IDM") is the exclusive
Development Manager for Aseana. It is a wholly-owned subsidiary of
Ireka Corporation Berhad, a company listed on the Bursa Malaysia
since 1993, which has over 45 years of experience in construction
and property development. IDM is responsible for the day-to-day
management of Aseana's property portfolio and the introduction and
facilitation of new investment opportunities.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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