Infrastructure India plc New Asset Management Agreement (8804J)
September 15 2016 - 2:00AM
UK Regulatory
TIDMIIP TIDMTTM
RNS Number : 8804J
Infrastructure India plc
15 September 2016
15 September 2016
Infrastructure India plc
("IIP" or the "Company" or, together with its subsidiaries, the
"IIP Group")
New Asset Management Agreement
Infrastructure India plc, an AIM quoted infrastructure fund
investing directly into assets in India, announces that on 14
September 2016 it entered into a revised and restated management
and valuation and portfolio services agreement (the "New Management
Agreement") with Franklin Park Management, LLC ("Franklin Park" or
the "Asset Manager"), the Company's existing asset manager, to
effect a reduction in annual cash fees payable by IIP to the Asset
Manager. The other terms of the New Management Agreement are
unchanged from those of the prior agreement between the
parties.
Under the New Management Agreement, which replaces the previous
agreement between the parties, the Group has re-appointed Franklin
Park to provide investment advisory and valuation and portfolio
services to the Group on an exclusive basis.
Under the New Management Agreement, the Asset Manager is
entitled to a fixed annual management fee of GBP5,520,000 per annum
(the "Annual Management Fee"), payable quarterly in arrears. In
addition to the Annual Management Fee, the Asset Manager will be
issued with 605,716 new ordinary shares in the Company annually
(the "Fee Shares"). The Fee Shares will be issued free of charge,
on 1 July of each calendar year for the duration of the New
Management Agreement.
Under the prior agreement, the Asset Manager was entitled to an
annual management fee of 2% of the value of the Group's assets less
adjustment for increase in assets purchased from the proceeds of
the placing completed by the Company in 2014. Fees for the year
ended 31 March 2016 under the previous agreement were
GBP5,910,000.
The New Management Agreement may be terminated for, inter alia,
cause by either party or by either party providing the other with
twelve months' written notice, subject to such written notice not
being given before 30 September 2019.
Should the New Management Agreement be terminated by way of
twelve months' prior written notice (by either party), the Asset
Manager shall be issued with an additional 151,429 new ordinary
shares in the Company, free of charge, on the date of
termination.
Franklin Park is the Company's asset manager and, under the AIM
Rules for Companies (the "AIM Rules"), Franklin Park is therefore
deemed to be a related party to the Company and the New Management
Agreement represents a related party transaction under the AIM
Rules. The independent directors of the Company, M.S. Ramachandran
and Timothy Walker, consider, having consulted with the Company's
nominated adviser, that the terms of the New Management Agreement
are fair and reasonable insofar as the Company's shareholders are
concerned.
Ends -
Enquiries:
Infrastructure India plc www.iiplc.com
Sonny Lulla Via Cubitt Consulting
Smith & Williamson Corporate Finance Limited
Nominated Adviser & Joint Broker
Azhic Basirov / Ben Jeynes +44 (0) 20 7131 4000
Nplus1 Singer Advisory LLP
Joint Broker
Gillian Martin - Corporate Finance
James Waterlow - Investment Fund Sales +44 (0) 20 7496 3000
Cubitt Consulting Limited
Financial Public Relations
Simon Brocklebank-Fowler +44 (0) 20 7367 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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