16th Feb 2007 08:35
IPSA Group PLC16 February 2007 16 February 2007 IPSA Group plc ("IPSA" or the "Company") Issue of Equity IPSA, the independent power plant developer with operations in southern Africa,which is quoted on AIM and has a secondary listing on ALTx, announces that it israising £7,500,000 (approximately South African Rand (ZAR) 105,853,875), beforeexpenses, by way of a placing for cash (the "Placing") of 10,000,000 newordinary shares (the "Placing Shares") of 2 pence each. The proceeds of the Placing will strengthen the Company's balance sheet whilstit is in negotiations to acquire a number of turbines as part of the equipmentrequired for the first 500MW of generating capacity due to be installed for theCoega Fast Track Project. The funds will also assist in meeting the Company'sworking capital requirements over the coming year. The Placing, to new and existing shareholders in South Africa and the UnitedKingdom, is at a price of 75 pence per ordinary share, which is at a discount of11.8 per cent to the mid market closing price on 14 February 2007. The PlacingShares will represent 13.14 per cent of the enlarged issued share capital. ThePlacing Shares will be allotted out of the Company's existing share allotmentauthorities and will be admitted to trading on both AIM and ALTx ("Admission").The Placing is conditional on Admission and the receipt of exchange controlapproval by the South African Reserve Bank. Following the Placing, IPSA will have 76,129,469 fully paid shares in issuetrading on both AIM and ALTx. ALTx is the alternative exchange of the JSELimited in South Africa. The new ordinary shares will rank pari passu in allrespects with existing ordinary shares. Stephen Hargrave, chairman of IPSA, said: "We are delighted in this vote of confidence from investors in the UK and SouthAfrica, and are particularly pleased to welcome further significant investmentfrom leading South African institutions." Peter Earl, CEO of the Company, said: "We are very pleased to be deepening our relationship with key institutions inboth South Africa and UK as the Company looks to develop its pipeline ofprojects in South Africa. This Placing also puts the Company in a strong negotiating position as we seekto finalise the acquisition of turbines and full financing of the Coega FastTrack Project." For further information please contact: Peter Earl, CEO, IPSA Group plc 020 7793 7676 John Llewellyn-Lloyd, Noble & Company Limited 020 7763 2200 Allan Piper, First City Financial 07736 064982 020 7436 7486 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
IPSA.L