Origo Partners PLC Dispute Resolution and Proposed Restructuring (4691A)
September 29 2015 - 2:01AM
UK Regulatory
TIDMOPP
RNS Number : 4691A
Origo Partners PLC
29 September 2015
29 September 2015
Origo Partners PLC
("Origo" or the "Company")
Dispute Resolution and Proposed Restructuring
In November 2014, Origo shareholders approved a revised
investing policy, under which the Company is now, through an
orderly realisation programme, seeking to divest its entire
portfolio over a period of no longer than 4 years at such time and
under such conditions as the independent directors of Origo may
determine in order to maximise value on behalf of the Company's
shareholders.
Shareholders will also be aware that the Company's articles of
association (the "Articles") include the requirement for the
Company to undertake a US$12 million convertible zero dividend
preference share ("CZDP") tender offer by 8 March 2016.
Whilst the Company remains confident of the delivery of the
objectives of its investing policy, the continuing uncertainty in
relation to the Chinese economy and depressed commodity markets
have meant that realisations of the Company's assets at attractive
valuations have been challenging in the short term. It is therefore
possible that the Company might not be in a position to redeem
US$12 million of CZDPs by March 2016.
The Company has therefore worked with the main CZDP shareholders
to form a set of proposals which would restructure the CZDPs and
would provide Origo with greater flexibility to implement its
orderly realisation strategy - with a view to maximising value on
behalf of Origo's shareholders. The key elements of the proposals
are expected to include the following:
-- The removal of the requirement for the Company to undertake a
US$12 million CZDP tender offer by 8 March 2016;
-- The accreted principal amount per CZDP be reset to US$1.28.
In the event that aggregate distributions equal to the aggregate
CZDP accreted principal amount (US$1.28 per CZDP) have not been
made to the holders of the CZDPs ("CZDP Shareholders") by 31
December 2017, the remaining aggregate undistributed accreted
principal amount shall increase at an accrued rate of return of 5%
p.a. from 1 January 2018 and at an accrued rate of return of 10%
p.a. from 1 January 2019 until repaid through distributions to CZDP
Shareholders;
-- Origo's ordinary shareholders ("Ordinary Shareholders") to receive a proportion of all future distributions alongside CZDP Shareholders, pro rata as follows:
- in respect of the first US$40 million of distributions, 87.5%
to CZDP Shareholders and 12.5% to Ordinary Shareholders;
- in respect of the next US$40 million of distributions, 70% to
CZDP Shareholders and 30% to Ordinary Shareholders;
- in respect of distributions in excess of US$80 million:
o until such time as distributions equal to the accreted capital
amount have been made to the CZDP Shareholders, 30% to CZDP
Shareholders and 70% to Ordinary Shareholders; and
o thereafter, 100% to Ordinary Shareholders.
-- The Articles be amended to remove the mandatory CZDP conversion clause; and
-- The settlement of the dispute with Brooks Macdonald Group plc ("BM").
In addition, an additional independent non-executive director of
Origo, acceptable to BM, will be identified and appointed to the
board of directors of Origo.
The Proposals remain subject to the negotiation of appropriate
agreements and amendments to Origo's articles of association and
approval at a general meeting of Origo and separate class meetings
of the CZDP Shareholders and of the Ordinary Shareholders.
The directors of the Company believe that that the proposed
settlement of the dispute and restructuring will benefit the
Company and all of its shareholders. The Company is in the process
of finalising a set of detailed proposals, which will be put to
Origo's shareholders as soon as is practicable.
Further announcements will be made in this regard in due
course.
For further information about Origo please visit
www.origoplc.com or contact:
Origo Partners plc niklas@origoplc.com
Niklas Ponnert
Nominated Adviser
Smith & Williamson Corporate Finance
Limited
Azhic Basirov
Ben Jeynes +44 (0)20 7131 4000
Public Relations
Aura Financial
Andy Mills +44 (0)20 7321 0000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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