Update on Investment

RNS Number : 4294O

Craven House Capital PLC

19 September 2013

 



19 September 2013

Craven House Capital Plc

("Craven House" or the "Company")

Update on Investment

Further to its announcement on 20 August 2013, the Company is pleased to announce that Pressfit Holdings plc ("Pressfit"), one of its investee companies, has released the results of its recent Annual General Meeting ("AGM") and Extraordinary General Meeting ("EGM"). All resolutions were passed at the EGM, and all resolutions except one (the appointment of Mr Guanghui Xue to the board of Pressfit) were passed at the AGM.

Accordingly, Pressfit now 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. Indeed, such was the support amongst Pressfit's shareholders, that the resolution at the EGM permitting the directors of Pressfit to make all necessary arrangements to enable admission of the Company's shares to trading on AIM, was passed with unanimous consent.

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. 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 results of the AGM and EGM sent by Pressfit to its shareholders are available on Pressfit's website at:

http://pressfitholdings.com/Results%20of%20Pressfit%20AGM_EGM%20Final.pdf 

Mark Pajak, Acting Chairman of Craven House, commented, "We are pleased that Pressfit can now move forward with its intention to seek a quotation on AIM. 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."

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]

 

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