27th Nov 2009 07:00
NATURE GROUP PLC
LETTER OF INTENT RE WASTE TREATMENT PLANT IN OMAN
AND
RELATED PARTY TRANSACTION
Nature Group PLC ("Nature" or the "Company"), a provider of port reception facilities and waste water treatment solutions for the oil, marine and process industries announces that, Nature Environmental Solutions Limited ("NESL"), a wholly owned subsidiary of Nature, has received a letter of intent dated 25 November 2009 from the Unique Maritime Group ("Unique") and Tile Marine Emirates Environmental Joint Venture which has been awarded the contract by the Oman Tender Board for the overall site construction of tankage and waste treatment facilities at the Oman Dry Dock, Duqm Port in the Sultanate of Oman, subject to certain agreed upon and acceptable conditions. The letter of intent and anticipated contract have expected gross revenues for NESL of approximately US$4.2 million.
The development of tanker facilities and a dry dock at Duqm is a major infrastructure project for the Oman Government. Nature has been in discussions regarding the environmental aspects of the new port development since mid 2008 and, following a tender process commenced by the Oman Tender Board in February 2009, the overall contract award (including site pipework and tankage) has been awarded with Nature's input to the regional joint venture which as above has contracted Nature to fulfil the plant and technical services element of the contract. This builds upon the Company's strategy to extend it's responsibilities for waste reception plant installations on a wider geographical basis.
Under the timetable established with the principal contractor and the Oman Government, Nature expects that approximately 70 per cent. (approximately £1.78 million at current exchange rates) of the revenues from the project would be recognised in 2010. The project is costed with contingencies to deliver a similar net margin to other environmental engineering projects delivered by Nature.
Work on the project in terms of front end engineering and design, has commenced following a kick off meeting with the principal client in Muscat last month. It is anticipated that Nature will derive ongoing support service revenues following the planned completion of the facility.
RELATED PARTY TRANSACTION
Unique offers a wide array of integrated support and construction services to the maritime and offshore construction industries. Richard Eldridge (a director and substantial shareholder of the Company) is also a director of Unique Maritime Group in which his family have potential beneficial minority interests. Accordingly, the transaction with Unique constitutes a related party transaction for the purposes of AIM Rule 13.
Where a company whose shares are listed on AIM enters into a Related Party Transaction, AIM Rule 13 requires the directors of the Company to consider, having consulted with the Company's nominated adviser, that the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.
The Directors (excluding Richard Eldridge) consider, having consulted with Astaire Securities Plc, the Company's nominated adviser, that the terms of the Related Party Transaction with Unique are fair and reasonable insofar as the Company's shareholders are concerned.
Richard Eldridge, Chairman commented:
"We believe the award of the Oman contract recognises the success and reputation of Nature's proven stand alone port waste treatment installations at Gibraltar. These operations provide for the modular treatment of waste and complex water to the highest environmental standards for discharge to sea, and recovery of oil for re-use."
For further information please visit www.investnature.com or contact:
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Nature Group PLC |
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Richard Eldridge, Chairman |
Tel: 018 4153 3611 |
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Nominated Adviser & Broker |
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Astaire Securities Plc |
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Aaron Smyth / Sebastian Wykeham |
Tel: 020 7448 4400 |
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Hermes Financial PR |
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Chris Steele |
Tel: 07979 604 687 |
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Trevor Phillips |
Tel: 07889 153 628 |
Related Shares:
Nature Group