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RGI responds to Synergy claim

By BFN News | 08:29 AM | Tuesday 14 June, 2011


RGI International Limited notes the statement issued on 13 June 2011 by Synergy Classic Limited and its beneficial owner, Petr Shura, in respect of claims amounting to $203.4 million. As announced on 13 January 2011, RGI previously received from Synergy a notice requiring that a subsidiary of RGI purchase 1.8 million ordinary shares in the Company held by Synergy. Under the Purported Notice, which RGI believes is without legal foundation, Synergy claims it is entitled to extract US$99.0 million from the Company while at the same time retaining 34.2 million ordinary shares amounting to 21.1% of the current issued ordinary share capital of RGI. The Company intends to vigorously defend any claim or other actions taken by Synergy against RGI in this regard. In addition, as announced on 9 June 2011, as the Company does not believe that admission of RGI's shares to the Main Market of the London Stock Exchange will be achieved by 30 June 2011, Synergy may claim the ability to sell back to the RGI group up to 36 million ordinary shares (22.25% of the issued share capital) in the Company (the "Put Option"). The price payable pursuant to the Put Option would be US$2.50 per ordinary share, totalling up to US$90 million, together with interest payable at a rate of 16 per cent. per annum (from July 2010). The exercise of the Put Option is subject to certain conditions At 8:29am: (LON:RGI) share price was -0p at 2.64p Story provided by StockMarketWire.com