26th Jan 2016 17:40
LONDON (Alliance News) - Global Resources Investment Trust PLC Tuesday outlined proposals to "ensure" its future, it said, including a subscription deal with Prime Star Energy FZE and an open offer, which could result in Primestar holding a majority stake in the company.
The investment trust proposes a firm placing of 195 million shares at a price of 2 pence each with Dubai-based Primestar, and 75 million shares with RDP Fund Management LLP, to be scaled down at its discretion to ensure enough shares are in public hands according to listing rules. It will also grant Primestar 50 million warrants to subscribe for shares at 4p each.
It will launch an open offer for shareholders of up to 15 million shares also at a price of 2p, and place a further up to 15 million shares with Primestar at the same price to be scaled down at its discretion depending on the take up of the proposed open offer.
Shares in Global Resources Investment closed up 25% at 6.25 pence Tuesday.
Additionally, LIM Asia Multi-Strategy Fund Inc has agreed the early redemption of its GBP3.5 million in loan notes for a consideration of GBP3.3 million, along with all accrued interest.
The proposed placings would result in Primestar potentially holding up to a 64.6% stake in the company.
In order to implement the proposals, the company would need to seek a waiver under UK Takeover code.
As part of its arrangements with Primestar the company will also seek shareholder approval to make changes to its investing policy.
Global Resources Investment plans to release its results for the 16 months to end-December by the end of February.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Grit Inv Tst