RNS Number : 8694M
Watford Leisure PLC
05 February 2009
Watford Leisure plc
("Watford Leisure" or the "Company")
Related Party Transaction
Watford Leisure announces that on 24 January 2009, the Company's 96% owned subsidiary, Watford Association Football Club Limited ("WAFC"), entered into a loan agreement with Valley Grown Salads ("VGS") in respect of a short term loan for the sum of £1.82 million from VGS to WAFC for the purpose of assisting with working capital (the "Loan"). The Loan plus interest of £69,750 is to be repaid from monies due from The Football Association Premier League Limited (the "FA"). The total £1,889,750 will be repaid in 4 instalments by 31 July 2009 and the payments due from the FA have been assigned to VGS.
The provision of the Loan is deemed to be a related party transaction under the AIM Rules for Companies. The independent directors of the Company (that is, excluding Vince and Jimmy Russo who jointly control VGS) consider, having consulted with Strand Partners Limited, the Company's nominated adviser, that the terms of the Loan are fair and reasonable insofar as the Company's shareholders are concerned.
Tel: 01923 496000
Strand Partners Limited
Tel: 020 7409 3494
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