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Alpha Returns Group plc (ARGP)

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Monday 04 July, 2016

Alpha Returns Group plc

Riche Bright Minority Share Repurchase

Riche Bright Minority Share Repurchase

Alpha Returns Group plc
(the "Company" or "Alpha Returns")

4 July 2016

Riche Bright Minority Share Repurchase

Alpha Returns, the AIM traded investing company focussing on investments in high-growth Asian economies, is pleased to announce that its 70 per cent owned joint venture vehicle Riche Bright Group Limited ("Riche Bright") has repurchased shares in Riche Bright from its 30 per cent minority shareholders for cash at attributable net asset value, leaving Riche Bright as a wholly-owned subsidiary of Alpha Returns available for use as an intermediate bare holding company for future investments in accordance with the Company's investing policy. This follows the disposal by Riche Bright of Riche Bright Securities Limited ("RBSL") for a total cash consideration of HK$33,173,459, as announced on 12 May 2016 and subsequently.

Under a share repurchase agreement dated 30 June 2016 between Riche Bright, Alpha Returns and three selling shareholders (including Miss Tong Shyn Leng with 13 per cent. of Riche Bright's issued share capital), Riche Bright has repurchased for cancellation a total of 300,000 shares, representing 30% Riche Bright's issued share capital, for a consideration equal to 30 per cent of its current assets less total liabilities as at 30 June 2016. These are not expected to differ materially from those at 31 May 2016 when they stood at HK$33 million, which would give rise to total cash consideration of approximately HK$9.9 million, of which HK$9 million has been paid, with the balance expected to be paid on 11 July 2016. As a result of the buy-back and cancellation, Riche Bright becomes a wholly owned subsidiary of Alpha Returns with cash of some HK$20 million (approximately £1.94 million) available for investment and a further HK$3 million advanced to Alpha Returns Hong Kong Limited for working capital.

The share repurchase is a related party transaction for the purposes of the AIM Rules because Miss Tong individually and the selling shareholders taken together own 10 per cent or more of Riche Bright's issued share capital. The Directors of Alpha Returns, all of whom are independent for these purposes, having consulted with the Company's nominated adviser, consider the terms of the share repurchase are fair and reasonable insofar as the shareholders of Alpha Returns are concerned.

For further information:

Alpha Returns Group plc  Christopher Neo
Executive Director
020 3286 6388
ZAI Corporate Finance Ltd (NOMAD) Peter Trevelyan-Clark / Tim Cofman 020 7060 2220
Peterhouse Corporate Finance (Broker)  Duncan Vasey / Lucy Williams  020 7220 9797

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Alpha Returns Group plc via Globenewswire


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