PANC Panceltica

    RNS Number : 7061D
  Panceltica Holdings Limited
  18 September 2008
   

 For Immediate Release   18 September 2008

    Panceltica Holdings Limited (Panceltica)

    Joint Venture Agreement 


    Panceltica Holdings Limited (Panceltica), the AIM listed company based in Qatar which provides fast track steel technology to the
international construction industry, announces that it has entered into a legally binding Memorandum of Understanding (MoU) with Smart
Cities Est, a company registered in Saudi Arabia, whereby a joint venture company will be established in the Kingdom of Saudi Arabia.

    The joint venture company, to be called Panceltica Saudi Arabia Limited (the Saudi Company), will be owned 70% by Smart Cities, 15% by
Panceltica, and 15% by Strategic Partner Limited (an investment company, which holds 32,760,000 ordinary shares in Panceltica, and which is
managed by a partnership in which Faisal Belhoul, a director of Panceltica, is a partner). 

    The joint venture, which will operate for a minimum of 7 years, will act as Panceltica's sole representative in the Kingdom of Saudi
Arabia, and with the backing of Smart Cities and His Highness Prince Turki bin Abdullah bin Abdulaziz, the joint venture intends to
construct significant volumes of buildings in the Kingdom of Saudi Arabia, being in the period of one year commencing 1 September 2008
projects equivalent to 500 units (100,000 sq metres), in 2009 projects equivalent to 5,000 units (1 million sq metres) and in each year
thereafter projects equivalent to 10,000 units (2 million sq metres). This will make a real impact on the demand for housing and other
buildings in the Kingdom of Saudi Arabia.

    The Chief Executive Officer of Smart Cities Mr. Mohammed A. Al Mansour said: "We recognise the need in the Kingdom of Saudi Arabia for
modern buildings, constructed without the delays inherent in traditional building techniques. Panceltica Saudi Arabia, with its ability to
adopt the exciting Panceltica technology, will meet this need."

    Paul Fraser, the Chief Executive Officer of Panceltica, said 
    "As an international business, based firmly in the MENA Region, we regard the Kingdom of Saudi Arabia as critically important to our
continued growth, and we see this MoU as a major step towards meeting our strategic goals."
      For further information please contact:

 Panceltica Holdings Limited                  Today: Tel: +44 (0) 20 7466 5000
 Paul Fraser, Chief Executive Officer           Thereafter: Tel: +974 462 2252
 Ben Bright, Chief Financial Officer
 Anthony Wilson, Deputy Chairman
                                                      Tel: +44 (0)207 489 4500
 Blomfield Corporate Finance Limited,
 Nominated 
 Toby Howell/ Charlie Hill-Wood
                                                      Tel: +44 (0)20 7382 4450
 Hichens, Harrison & Co. plc, Broker 
 Martin Lampshire
                                                     Tel: +44 (0) 20 7466 5000
 Buchanan Communications
 Mark Edwards / Jeremy Garcia




This information is provided by RNS
The company news service from the London Stock Exchange
 
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