1st Feb 2006 11:10
Chime Communications PLC01 February 2006 CHIME COMMUNICATIONS PLC ("Chime" or "the Company") CANCELLATION OF WARRANTS On 30 September 2003 as part of its refinancing arrangements Chime issuedwarrants over ordinary shares to the Royal Bank of Scotland ("RBS"). Thewarrants entitled RBS to subscribe for 8,280,320 ordinary shares in the Company(3.3% of the current shares in issue) at an exercise price of 24p per share atany time up to 30th September 2006. Chime today announces that it has cancelled the warrants in exchange for apayment of £800,000 to RBS. Based on the Company's closing mid market share price on 30 January 2006 of34.25p per share, the exercise of the warrants and immediate sale of theordinary shares on that date would have generated a profit of 10.25p per share,amounting to £848,733. Lord Bell, Chairman of Chime said: "We announced on 12 January 2006 that we would use some of the proceeds of thesale of our remaining shares in HHCL Group Limited to begin a share buy backprogramme. We believe this will result in a more efficient capital structure forthe Company as well as enhancing the Company's earnings per share. Thecancellation of these warrants, although not part of the share buy backprogramme, is consistent with this strategy". END For further information, please contact: Chime Communications:Lord Bell, Chairman Tel: 020 7861 8516 Mark Smith, Finance Director Tel: 020 7861 8620 Bell Pottinger Corporate and Financial:Robin Tozer Tel: 020 7861 3232 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CHW.LRBS.L