7th Nov 2019 18:17
(Alliance News) - Inland ZDP PLC said Thursday it will issue 1.7 million new zero dividend preference shares at 161.5 pence each.
The expected proceeds of GBP2.7 million will be loaned to Inland ZDP's holding company, Inland Homes PLC.
Shares in Inland ZDP were untraded in London on Thursday but last closed at 161.50 pence each. Inland Homes closed 0.5% higher at 79.60 pence each.
Inland Homes will pay the costs of the placing out of its own resources and will apply the proceeds of the placing to invest in inventories, property development joint ventures or settle liabilities to vendors of development sites.
The new shares are expected to begin trading on London's Main Market next Tuesday.
The new loan will be on the same terms as the loan note entered into between ZDPCo and Inland Homes in 2012, which was then amended in 2018.
Inland ZDP was set up in 2012 as a wholly owned subsidiary of housing plot developer Inland Homes to issue zero dividend preference shares. A loan agreement between the two sees Inland ZDP loan the proceeds of any issuances to Inland.
Inland Homes is required to repay the loan when Inland ZDP is wound up. The ZDP repayment date was initially April 2019, but this was extended by five years in July.
Inland ZDP shareholders will receive no dividends, but are entitled to receive 201.4p per ZDP share in 2024.
By Paul McGowan; [email protected]
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