23rd May 2007 07:01
Michelmersh Brick Holdings PLC23 May 2007 For release at 7.00am 23 May 2007 Michelmersh Brick Holdings plc ("Michelmersh") Loan by W E Black Limited Michelmersh announced on 21 May 2007 that it had acquired a total of 9,547,869shares in Baggeridge Brick PLC ("Baggeridge") representing 23.12 per cent of theissued share capital of Baggeridge. Michelmersh also confirmed on 17 May 2007 that it was considering its positionwith respect to its shareholding, including the possibility of making an offerfor the entire issued share capital of Baggeridge and that such an offer wouldcomprise a full cash offer with a partial share alternative. Michelmersh iscontinuing to seek support for a possible cash offer. As part of the financing of the Baggeridge share purchases, and any possibleoffer for Baggeridge, Michelmersh announces that it has entered into a loanagreement with W.E. Black Limited ("W.E. Black") dated 22 May 2007. W.E. Blackis a company in which Mr Eric Gadsden, Chairman of Michelmersh, has asignificant beneficial interest and that consequently this constitutes a relatedparty transaction within the meaning of the AIM Rules. The loan agreementformalises the terms upon which the Company received an initial loan of £11.5million from W.E. Black on 16 April 2007. The loan is for £16.5 million, with an interest rate equivalent to thatattaching to the Company's existing term loan with Barclays Bank Limited(currently 7.0 per cent). The loan is repayable at will by Michelmersh and,save in certain circumstances of default, on 90 days' notice from W.E. Black.W.E. Black has also confirmed that in the event that an offer for Baggeridgewere subsequently made by Michelmersh it would be prepared to make furtherfacilities available to Michelmersh as part of the financing of such an offer. The directors of Michelmersh (with the exception of Mr Gadsden who has abstainedby reason of his association with W.E. Black), having consulted with CharlesStanley Securities as the nominated adviser to Michelmersh, consider that theterms of the loan to Michelmersh from W.E. Black are fair and reasonable insofaras Michelmersh's shareholders are concerned. Enquiries: Charles Stanley Securities 020 7149 6000Russell Cook, Anthony Noakes Tavistock Communications 020 7920 3150Jeremy Carey, Richard Sunderland This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Michelmersh Brick Holdings