20th Sep 2006 07:01
Trinity Capital PLC20 September 2006 Trinity Capital PLC ("Trinity" or the "Company") Proposed Share Buy-back Trinity announces that it will seek confirmation from the High Court of Justiceof the Isle of Man (the "Court") with respect to the cancellation andreclassification of its share premium account as a distributable reserve inconnection with the proposed buy-back of up to 10% of its issued share capital.This step is being taken in order to address short term weakness in theCompany's share price and enhance shareholder returns by buying at a discount tothe Company's estimated net asset value. The Company intends to make a formal application to the Court shortly and it isanticipated that the necessary confirmation will be granted within approximatelytwo months of application, following which the Company will be able (but notbound) to execute the share buy-back. The Directors believe that it is appropriate alongside this announcement toprovide an assessment of the Company's current position and future prospects: • The Indian real estate market in terms of foreign investment is still at a nascent stage with few comparable institutional players. This remains an advantage for Trinity and is reflected in the high number of transactions it is currently negotiating. • The Company is currently negotiating on transactions which collectively would involve Trinity deploying over £300 million of equity. • As a result, the Company expects to exceed its stated target of being more than 70% invested within the timetable set out at admission; namely 18 months. • The Company has made excellent progress in establishing a superior Indian asset management team. It has also established two platform partnerships with one of India's primary financial institutions IL&FS which it believes will add significantly to the Company's investments. Trinity is currently reviewing multiple transactions in partnership with IL&FS. • Trinity continues to hold its cash balances in a yield enhanced sterling portfolio. Since admission to the AIM market, the rupee has fallen by approximately 7% relative to the pound, enhancing further potential returns to the Company. Michael Cassidy, Chairman of Trinity Capital PLC, said "There is no doubt thatwe have built a strong platform in India in terms of the asset management team,the pipeline of transactions and the relationships we have developed. Wetherefore remain wholly confident of creating an excellent portfolio of Indianreal estate developments. We are aggressively pursuing the opportunities in ourpipeline but we will not compromise on the quality or value of the futureportfolio." NOTE: At the time of the IPO, the Company passed a composite special resolution which,amongst other things, cancelled and reclassified as a distributable reserve anyamount standing to the credit of the share premium account following the placing(subject to confirmation of the Court) and authorised the Company to purchase upto 10% of its own issued ordinary shares at a price not to exceed 105% above theaverage of the mid-market quotations for the five business days preceding suchpurchase. Subject to any extension, the Company has until the earlier of thenext AGM or 29 September 2007 to use this buy back power. In accordance with Isle of Man law, once the shares are purchased they cannot beheld in treasury and therefore must be cancelled. ENDS Enquiries: Trikona Capital Rak Chugh (New York) +1 212 372 4841 Cardew Group Tim Robertson +44 20 7930 0777 Sofia Rehman Catherine Maitland (London) Gutenberg Communications Harjiv Singh (New York) +1 212 239 8596 Pranav Kumar (Delhi) +91-98100-77898 Numis Iain McDonald +44 20 7776 1567 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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