Terra Capital PLC Tax Litigation Update (5558N)
October 27 2016 - 2:00AM
UK Regulatory
TIDMTCA
RNS Number : 5558N
Terra Capital PLC
27 October 2016
Terra Capital Plc ("Terra" or the "Company")
27 October 2016
Tax Litigation Update
As announced on 29 July and 16 September 2016, the Company won
its appeal against a claim by the Macau Tax Authorities in regard
to the sale of the AIA Tower and the Macau Tax Authority filed a
notice of appeal regarding that decision. Local counsel has advised
the Company that the Macau Tax Authority failed to timely file the
arguments required to "perfect" the appeal within the deadline set
by the Court.
Counsel has now received a decision from the Court that as a
result of the failure to timely file arguments, the appeal filed by
the Tax Department against the Administrative Court award, is
considered to have been "deserted". This means the appeal by the
Tax Department is no longer effective and has no further standing
and the earlier decision in the Company's favor is the final
decision. The Company's local counsel is now preparing a request
for the return of the bond previously paid into the Court when the
Company originally appealed the lower courts' decisions. The bond
has a value of approximately US $1.9 million and this decision will
add over two cents per share to Terra's NAV.
When further information becomes available, it will be reported
to shareholders.
The Company undertakes its activities in line with its strategy
to generate high absolute returns by investing in what the
Investment Manager believes are under-valued companies presenting
significant value opportunities. Due to market inefficiencies, the
Company and its Investment Manager, Terra Partners Asset Management
Limited ("TPAM"), believe that frontier markets provide many such
prospects.
The information in this release has been prepared from
information provided to TPAM by sources believed to be reliable,
and all reasonable precautions have been taken to ensure its
accuracy; however, no representation or warranty about the accuracy
of the information contained in, or of any omissions from, this
document or any supplementary information made available to any
interested party or its advisers is implied, and any liability in
respect of such information or omissions is hereby expressly
disclaimed. The Company and TPAM reserve their right to amend the
information provided herein, and its opinions, at any time, and
undertakes no obligation (express or implied) to provide any
recipient with any further information or to correct any
inaccuracies or omissions which may subsequently become apparent.
Readers are advised that a fund managed by TPAM, the Fund's
Investment Manager, and some officers and employees of TPAM
currently own stock in TCA.
Investments in Emerging and Frontier markets usually suffer from
liquidity problems, and are often affected by governmental
interference in the free market, local politics and vagaries in
commodity and currency prices; therefore, their prices can be very
volatile. This means that it can be difficult to acquire and
subsequently sell the shares noted in the Company's portfolio. This
document is for information purposes only and it is not intended as
an offer or solicitation regarding the purchase or sale of any
security or investment vehicle.
All solicitations or offers regarding the Company ("TCA") are
made and transacted on the public market of the AIM Section of the
London Stock Exchange and occur by reference to TCA's Offering
Memorandum and Circular noted above, as amended by subsequent
resolutions, primarily the one passed at the January 26, 2015 EGM.
Documents are accessible on TCA's website www.terracapitalplc.com
in the "Investor Centre" tab under the Documents and Announcements
section of the file "AIM Rule 26". This website contains important
information which may supplement, modify or differ from the
information contained herein and no prospective investment decision
should be considered before careful reading of documentation found
on TCA's website. All current and prospective investors should be
aware that PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE
RESULTS. By accepting this document, you agree to be bound by the
foregoing limitations.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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