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Result of EGM. Acquisition of 50% interest in Patagonia Energy. GBP3.5m Placing
29th July 2005
The Board of Rurelec PLC, the company established to develop rural electrification projects in Latin America, announces that at the Extraordinary General Meeting of the Company held today, 29 July 2005, the three Ordinary Resolutions and the Special Resolution were approved by shareholders.
Ordinary Resolution 1 approved the acquisition by Rurelec of fifty percent of the issued share capital of Patagonia Energy Limited from Basic. Patagonia Energy wholly owns directly (and indirectly through Electrica) Energia del Sur ('EDS'), which owns and operates a generating plant supplying electricity in the isolated electricity system of Southern Patagonia, Argentina. The generating plant was built in 1995 and comprises two General Electric MS6001B gas turbines in open cycle, capable of generating up to 77MW.
The consideration of USD 6 million in cash is payable in two or more tranches depending on the profitability of EDS. The first tranche is fixed at USD 4.5 million and is due upon Admission. The timing of subsequent payments of a further USD1.5 million will vary according to the future profits of EDS. As a result Rurelec and Basic will be joint venture partners in Patagonia Energy.
Ordinary Resolutions 2 and 3 permit the Directors to increase the authorized share capital of the Company from GBP600,000 to GBP850,000 by the creation of a further 12,500,000 ordinary shares of 2 pence each and to allot shares within certain limits. The Special Resolution also authorises the Directors to allot shares, again within agreed limits.
Placing
In order to finance the acquisition of Patagonia Energy, the Company has raised, before expenses, GBP3.5 millions by issuing 8,750,000 new Ordinary Shares ('the Placing Shares') through Hichens Harrison & Co plc. The Placing Shares will rank pari passu in all respects with Existing Ordinary Shares in the Company.
Enquiries:
Peter Earl
Rurelec PLC 020 7793 7676
Paul Shackleton
Daniel Stewart & Co. plc 020 7374 6789
Christian Dennis
Hichens Harrison & Co. plc 020 7588 5171
Daniel Stewart & Co. plc, which is regulated by the Financial Services Authority, is acting as nominated adviser to the Company. It will not be responsible to any person other than the Company for providing the protections afforded to its customers or for advising any other person on the contents of any part this announcement. The responsibilities of Daniel Stewart & Co. plc as the Company's nominated adviser under the AIM Rules are owed solely to the London Stock Exchange and are not owed to the Company or any Director or Shareholder or to any other person, in respect of any decision to acquire Ordinary Shares in reliance on any part of this announcement or otherwise. Daniel Stewart & Co. plc is not making any representation or warranty, express or implied, as to the contents of this announcement.
Hichens, Harrison & Co. plc, which is regulated by the Financial Services Authority, is acting as broker to the Company. It will not be responsible to any person other than the Company for providing the protections afforded to its customers or for advising any other person on the contents of any part of this announcement. The responsibilities of Hichens, Harrison & Co. plc as the Company's broker under the AIM Rules are owed solely to the London Stock Exchange and are not owed to the Company or any Director or Shareholder or to any other person, in respect of any decision to acquire Ordinary Shares in reliance on any part of this announcement or otherwise. Hichens, Harrison & Co. plc is not making any representation or warranty, express or implied, as to the contents of this announcement.