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Igas Energy PLC (IGAS)

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Wednesday 26 November, 2014

Igas Energy PLC

Statement re Finance Facility

RNS Number : 0396Y
Igas Energy PLC
26 November 2014
 



26 November 2014

IGas Energy PLC

("IGas" or "the Company")

Statement re Finance Facility

 

Further to the announcements on 16 January 2014 and 14 November 2014 regarding Mr Andrew Austin's finance facility with Equities First Holdings, LLC ("EFH") the Company wishes to make the following statement in relation to Mr Austin's financial interests in IGas shares.

Under the terms of the ‎facility with EFH announced on 16 January 2014, Mr Austin transferred  a total of 7.5 million shares to EFH and received the net sum of £7,009,533, equivalent to 93.46p per share transferred under the agreement. Mr Austin both fully intends and is required to repurchase all of these shares at the end of the three year term, by repaying the facility at a cost of £7,899,870 equivalent to 105.33p per share.

 Mr Austin's interests remain aligned with those of shareholders and through the arrangement he remains fully financially and economically exposed to the Company's share price. Whilst Mr Austin has transferred title to the shares and waives his voting rights in these shares, he has the right with five business days' notice in the event of certain corporate actions, to terminate the arrangement and on repaying the facility to take back and vote the shares. EFH is prohibited from short selling or voting the shares during the term of the agreement but is otherwise able to deal in the shares at its discretion. 

Whilst the facility is contracted by way of a sale and repurchase agreement, the arrangements are treated as a loan from an accounting and taxation perspective. The transaction is not a disposal for capital gains tax purposes. The economic risks and benefits in respect of the shares remain with Mr Austin (including the right to receive payments equivalent to any dividends paid on the shares whilst the agreement remains in place).

As announced previously, Mr Austin purchased 300,000 shares at 135.38 pence per share for a total consideration of £406,140.

As a result of this and subsequently disclosed further acquisitions, Mr Austin has an interest for disclosure purposes in the voting rights attaching to 10,967,075 Ordinary Shares representing 3.7 per cent of the issued ordinary share capital of the Company, which includes the shares transferred to EFH under the sale and repurchase agreement (as a result of the buy-back obligation).

Enquiries

IGas Energy plc                                                                 Tel: +44 (0)20 7993 9899

Andrew Austin, Chief Executive Officer

Stephen Bowler, Chief Financial Officer

Ann-marie Wilkinson, Head of Communications                             

 

Jefferies International Limited                                 Tel: +44 (0)20 7029 8000

Sara Hale

Graham Hertrich

Canaccord Genuity                                                         Tel: +44 (0)20 7523 8000

Tim Redfern

Henry Fitzgerald-O'Connor

 

MHP                                                                                      Tel: +44 (0)20 3128 8100

Andrew Leach

Barnaby Fry


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