19th Apr 2005 07:00
Terrace Hill Group PLC19 April 2005 For embargoed release at 7 a.m. 19 April 2005 TERRACE HILL GROUP PLC ("Terrace Hill") ACQUISITION OF MINORITY INTEREST - TRANSACTION WITH DIRECTOR Terrace Hill, the AIM traded property group, announces that on 18 April 2005 itacquired the outstanding 15% of Terrace Hill North East Limited ("THNE") fromPhilip Alexander Leech, Managing Director of Terrace Hill. The consideration of£1,116,357 will be satisfied half in cash and half by the issue to Mr Leech of1,395,447 new Ordinary Shares of 2p each of Terrace Hill at a price of 40p each. THNE was set up for Terrace Hill by Mr Leech in 1994. Over the last fivefinancial periods the profit before tax of THNE and its subsidiaries averaged anannual rate of £1.3m, and at 31 October 2004 net assets stood at £2.5m andtriple net asset value at £7.4m. The net asset value does not reflect thesubstantial increase (above cost) of work in progress, or the opportunities overthe next 10 years for the development of Baltic Business Park on Tyneside, animportant part of Terrace Hill's current development programme. Theconsideration to be paid to Mr Leech has been calculated on the basis of triplenet asset value as at 31 October 2004 and is therefore not dilutional to TerraceHill's own TNAV per share. Terrace Hill Chairman, Robert Adair said: "Since its early days, THNE hasperformed extremely well - a performance which in no small measure led to therecent appointment of Philip Leech as Group Managing Director. THNE has anumber of exciting projects in development and in the pipeline and has gained areputation of developing and managing high-quality schemes." Negotiation of the transaction was carried out on behalf of Terrace Hill byRobert Adair, Chairman, and Nigel Turnbull, Deputy Chairman. The transaction isconditional upon approval by shareholders of Terrace Hill in a general meetingpursuant to section 320 of the Companies Act 1985. Terrace Hill has todayissued a circular convening the required extraordinary general meeting on 5 May2005. Subject to the approval of the transaction by shareholders of Terrace Hill atthe extraordinary general meeting on 5 May 2005, application will be made forthe 1,395,447 new Ordinary Shares forming part of the consideration to beadmitted to trading on the AIM market. * * ENDS * * Contacts: Robert Adair, Chairman, Terrace Hill Group PLC Mob: 07973 710 774 Tel: 01845 537 037Nigel Turnbull, Deputy Chairman, Terrace Hill Group PLC Tel: 0207 631 1666Hugo de Salis/Isabel Crossley, St Brides Media & Finance Ltd Tel: 020 7242 4477Alasdair Robinson, Noble & Company Limited Tel: 0131 225 9677 Notes to editors:Terrace Hill Group PLC is an AIM traded Property Group with NAV £70 million. Ithas two divisions, Commercial Development throughout the UK and ResidentialInvestment and Development in Scotland and the North of England, with adevelopment programme of almost £600 million with approaching £200 millionunderway. Terrace Hill recently reported an increase of over 25% in both NAV andpro-forma Triple NAV to 38.12p per share and 39.99p respectively in the year to31 October 2004, and an increase in final dividend from 0.15p per share to 0.50pper share. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Thg