Update on Investment

RNS Number : 0760M

Craven House Capital PLC

20 August 2013

 



20 August 2013

Craven House Capital Plc

("Craven House" or the "Company")

Update on Investment

The Company is pleased to announce that one of its investee companies, Pressfit Holdings plc ("Pressfit"), intends to begin preparations for an introduction to the AIM market ("AIM").  The directors of Pressfit believe an introduction to AIM will help facilitate expansion and further Pressfit's aim of becoming a major international company specialising in the manufacture and distribution of stainless steel pressfittings. The proposal is being put to Pressfit's shareholders at an Extraordinary General Meeting on 30 August 2013.

Pressfit is an unquoted UK public limited company with Hong Kong and Chinese subsidiaries, which utilises proprietary technology to manufacture high-precision, thin walled stainless steel and carbon steel pipes and fittings used for plumbing and heating applications in the commercial, residential, industrial and agricultural sectors. Craven House currently holds 36.9% of the issued share capital of Pressfit, following investments in January and June 2012, together with a convertible loan over a further 3% of the issued share capital. Mark Pajak, Acting Chairman of Craven House, is also Non-Executive Chairman of Pressfit.

Pressfit recently announced a partnership agreement ("Partnership Agreement") with GXM (AMCOPRESS) GROUP CO., LIMITED ("AMCO"). The directors of both Pressfit and Craven House believe that the Partnership Agreement will benefit Pressfit as not only does AMCO operate in the same market as Pressfit, but it is also providing significant investment, management and a live sales and distribution channel. As part of the Partnership Agreement, two representatives from AMCO have been nominated to join the board as non-executive directors at Pressfit's Annual General Meeting ("AGM") on 30 August 2013.

Also as part of the Partnership Agreement, AMCO has agreed to invest £1,575,000 into Pressfit by way of a convertible loan note. If converted, AMCO would hold 45.1% of Pressfit's enlarged share capital, with Craven House's holding reduced to 20.3% of the enlarged share capital (or 21.6% if Craven House converts its own convertible loan note).  The conversion price for AMCO's convertible loan is 6.16p (£0.0616), reflecting the value that the AMCO agreement brings to Pressfit with AMCO's decades of industry experience and existing order book.

Background on AMCO

AMCO is a group of associated companies engaged in the research, manufacturing and distribution of pressfittings targeting global markets ("AMCO Group"). It started with the establishment of AMCO Engineering (HK) in 1992 by Mr. Siu Wai Eric NG (newly proposed director). After two decades of growth, it now has several joint ventures and global partnerships promoting the wider use of metal pressfittings. The main associated companies are Hong Kong-based Amco Engineering (HK) Co. Ltd. (engineering and R&D) and Anpro Co. Ltd. (distribution of fittings); Singapore-based Anpro Pressfit Pte Ltd. (production of metal pressfittings); and China-based Dong Sheng Group (copper pressfitting production). AMCO Group provides a complete solution for metal pressfittings systems made from stainless steel, carbon steel, and copper.

The circular sent by Pressfit to its shareholders, which includes notice of the AGM and EGM is available on Pressfit's website at:

http://www.pressfitholdings.com/Pressfit%20AGM_EGM%20Notice%205Aug2013.pdf 

Mark Pajak, Acting Chairman of Craven House, commented, "We are pleased that Pressfit intends to seek a quotation on AIM, and that they have entered into the Partnership Agreement with AMCO. The proposed quotation on AIM would help demonstrate the value that has been created in Pressfit since our initial investment and move Craven House closer to an exit from its position in the Company,. 

The Partnership Agreement with AMCO not only brings in significant funding for Pressfit's expansion plans, but also an experienced partner who comes with industry expertise and international contacts which can subsequently be leveraged by Pressfit."

For further information please contact:

Craven House Capital Plc:
www.cravenhousecapital.com
Alexandra Eavis Non Executive Director & Company Secretary	Tel: [phone]
Daniel Stewart & Company Plc: (Nominated Adviser & Broker)
Antony Legge/James Thomas	Tel: [phone]

 

END

 

 

MSCPMMPTMBJTMBJ