16th Jul 2010 09:58
Engel East Europe N.V.
Investment in Parent
Further to the announcement made on 10 March 2010, Engel East Europe N.V. ('Engel East Europe' or 'the Company'), the AIM-quoted Central and Eastern European ('CEE') residential property developer (EEE:LN), has been notified that GBES Limited (a company incorporated in Cyprus) has signed an agreement with Engel Resources and Development Limited ("ERD") to invest capital of approximately €9.2 million for 53% of the enlarged share capital of ERD (part of which will be given as loan until the receipt of court approval) and to provide an additional credit line of approximately €10.2 million to ERD.
The agreement is subject to the approval of the district Court of Tel Aviv, and the approval of bond holders in both ERD and Engel Europe Limited, which is the parent company of ERD.
ERD owns 100% of Engel General Developers Limited, which owns 68.4% of Engel East Europe.
Whilst the Board of Engel East Europe welcomes the investment by GBES in ERD, no commitment has yet been made by ERD to provide financial support to Engel East Europe.
A further announcement will be made in due course.
Enquiries:
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Engel East Europe N.V. |
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Assaf Vardimon |
Tel: +972 (9) 970 7018 |
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Libertas Capital Corporate Finance Limited |
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Sandy Jamieson |
Tel: +44 (0) 20 7569 9650 |
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