Equatorial Palm Oil plc Roll Over of $50.5m Loan from KLK to LPD (6443S)
07 November 2019 - 9:15PM
UK Regulatory
TIDMPAL
RNS Number : 6443S
Equatorial Palm Oil plc
07 November 2019
7 November 2019
EQUATORIAL PALM OIL plc
("EPO" or the "Company")
Roll Over of $50.5m Loan from KLK to Joint Venture Company
Equatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil
development and production company with operations in Liberia, West
Africa, announces today that KLK Agro Plantations Pte Ltd ("KLK
Agro"), a wholly owned subsidiary of Kuala Lumpur Kepong Berhad
("KLK") agreed to extend the maturity of US$50.5 million of
outstanding loans to EPO's 50 per cent. owned joint venture
company, Liberian Palm Developments Limited ("LPD") (the "Extended
Loans").
The Extended Loans comprise loans of US$20.5m, announced on 27
January 2015, and US$30.0m, announced on 5 September 2016, both of
which have been fully drawn down and were due to mature on 25
January 2020. The Extended Loans, together with all accrued
interest, are now repayable by no later than 30 September 2032
("Loan Extension").
The key terms of the Extended Loans remain as follows:
-- Term - expiring no later than 30 September 2032
-- Interest - 3-months USD LIBOR + 5 per cent per annum
-- Repayment - Loan principal (together with all accrued
Interest due) on expiry of the Term or earlier at the election of
LPD
The Loan Extension has been agreed for nil consideration. The
terms of the additional loans entered into by KLK Agro and LPD
dated 12 October 2017 (US$30,000,000) and 20 May 2019
(US$20,000,000) are unaffected by this Loan Extension and remain
payable on 10 October 2022 and 19 May 2024, respectively.
Related Party Transaction
KLK (through its wholly owned subsidiary KL-Kepong International
Limited) currently holds 50 per cent of the issued share capital of
LPD and ordinary shares in EPO representing approximately 62.86 per
cent. of the issued share capital of the Company. Accordingly, LPD
is a related party to the Company as defined in the AIM rules for
Companies and the Loan Extension is classified as related party
transaction under the AIM Rules for Companies. Michael Frayne and
Geoffrey Brown, being the non-related directors of EPO for the
purposes of this transaction, consider, having consulted with the
Company's nominated adviser, Strand Hanson Limited, that the terms
of the Loan Extension are fair and reasonable insofar as the
Company's shareholders are concerned.
- END -
For further information, please visit www.epoil.co.uk or
contact:
Equatorial Palm Oil plc +44 (0) 20 7268
Geoffrey Brown (Executive Director) 4874
Strand Hanson Limited (Nominated Adviser) +44 (0) 20 7409
James Harris / James Bellman 3494
Mirabaud Securities LLP (Broker) +44 (0) 20 7484
Peter Krens 3510
Notes to editors:
Equatorial Palm Oil plc is an AIM listed crude palm oil
developer and producer with palm oil estates in Liberia, West
Africa. The Company was founded in 2005 and is focused on becoming
a global, sustainable producer of high quality palm oil to regional
and international markets.
The Company is geographically well positioned to serve the
international and regional markets and is committed to making a
positive impact on the communities in which it operates through
investment in local schools, health clinics, housing and
infrastructure.
The Company's largest shareholder and 50:50 joint venture
partner in LPD is KLK. KLK is one of the largest palm oil producers
in the world and the Company will greatly benefit from their many
years of expertise in oil palm development.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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November 07, 2019 05:15 ET (10:15 GMT)
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