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D1 Oils Plc (NEOS)

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Friday 02 July, 2010

D1 Oils Plc

Bromborough sale now complete

RNS Number : 7822O
D1 Oils Plc
02 July 2010
 

FOR IMMEDIATE RELEASE

D1 Oils plc

Bromborough sale now completed

The Board of D1 Oils plc ("D1 Oils" or the "Company") today announces the completion of the sale of the Bromborough site. 

As announced on 24 June, the buyer had informed the Board that there was a material risk that it would not be funded to perform its obligations under a possible revised structure to that agreed in binding terms and announced on 4 February.  Accordingly the Board decided to continue discussions for a further short period, whilst taking legal steps to enforce its contractual rights.  Since this time the buyer has been successful in firming up its sources of funding for the acquisition of Bromborough.

The Company can now confirm that it has received £2.2m of cash from the buyer.  The Company will apply £0.4m of the £2.2m receipt to fund its obligation to account for VAT to HMRC.  The Board anticipates that the buyer will be able to recover £0.4m of VAT from HMRC in due course and the buyer has agreed to pass on such receipt to the Company. 

The buyer has also agreed to pay the Company a net royalty, which will be capped at £0.4m plus VAT, based on Bromborough's future production volumes of biodiesel.  The buyer's production plans indicate that the Company should receive these payments during the next two to three years.  However, the Board anticipates that the precise magnitude and timing of any royalty payments will depend on the commercial success of the buyer in managing a range of factors and so there remains a material risk to recovery.  All other particulars of the sale remain as announced on 4 February.


For further information please contact: 

 

D1 Oils plc
+ 44 (0) 20 7367 5609
Ben Good, Chief Executive Officer
 
 
 
Piper Jaffray Ltd.
+ 44 (0) 20 3142 8700
Charlie Lilford
 
Rupert Winckler (Qualified Executive)
 
 
 
Brunswick Group
+ 44 (0) 20 7404 5959
Kevin Byram
 
Claire Gore
 

 

Piper Jaffray Ltd., which is authorised and regulated by the Financial Services Authority, is acting exclusively for D1 Oils and for no-one else in connection with the matters referred to in this announcement and will not be responsible to anyone other than D1 Oils for providing the protections afforded to customers of Piper Jaffray Ltd. nor for giving advice in relation to the matters referred to in this announcement.

Responsibility

The Directors of D1 Oils accept responsibility for all of the information contained in this announcement.  To the best of their knowledge and belief (having taken all reasonable care to ensure that such is the case), the information contained in this announcement is accurate and does not omit anything likely to affect the import of such information.  To the best of their knowledge and belief (having taken all reasonable care to ensure that such is the case), the information contained in this announcement for which the Directors take responsibility is accurate and does not omit anything likely to affect the import of such information.


Disclosure requirements of the Takeover Code (the "Code")

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class ofrelevant securities of D1 Oils or of any paper offeror (being any offeror other thanan offeror in respect of which it has been announced that its offer is, or is likely to be, solely incash) must make an Opening Position Disclosure following the commencement of the offerperiod and, if later, following the announcement in which any paper offeror is first identified.

An Opening Position Disclosure must contain details of the person's interests and shortpositions in, and rights to subscribe for, any relevant securities of each of (i) D1 Oils and (ii) any paper offeror(s). An Opening Position Disclosure by a person to whomRule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10thbusiness day following the commencement of the offer period and, if appropriate, by no laterthan 3.30 pm (London time) on the 10th business day following the announcement in whichany paper offeror is first identified. Relevant persons who deal in the relevant securities of theofferee company or of a paper offeror prior to the deadline for making an Opening PositionDisclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more ofany class of relevant securities of the offeree company or of any paper offeror must make aDealing Disclosure if the person deals in any relevant securities of the offeree company or ofany paper offeror. A Dealing Disclosure must contain details of the dealing concerned and ofthe person's interests and short positions in, and rights to subscribe for, any relevantsecurities of each of (i) the offeree company and (ii) any paper offeror, save to the extent thatthese details have previously been disclosed under Rule 8. A Dealing Disclosure by a personto whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on thebusiness day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whetherformal or informal, to acquire or control an interest in relevant securities of an offereecompany or a paper offeror, they will be deemed to be a single person for the purpose of Rule8.3.

Opening Position Disclosures must also be made by the offeree company and by any offerorand Dealing Disclosures must also be made by the offeree company, by any offeror and byany persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).Details of the offeree and offeror companies in respect of whose relevant securities OpeningPosition Disclosures and Dealing Disclosures must be made can be found in the DisclosureTable on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details ofthe number of relevant securities in issue, when the offer period commenced and when anyofferor was first identified. If you are in any doubt as to whether you are required to make anOpening Position Disclosure or a Dealing Disclosure, you should contact the Panel's MarketSurveillance Unit on +44 (0)20 7638 0129.


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