Update on London Asia Capital
FOR IMMEDIATE RELEASE 30 June 2009
BRAINSPARK PLC
('Brainspark' or the 'Company')
Update on London Asia Capital Plc Arrangements
The Company announces that, following the 26 February 2009 and 14 May 2009 announcements, China IPO Group plc ('China IPO'), the Jersey based wholly owned subsidiary of Brainspark plc, has now entered into a contractual agreement, dated 21st June 2009, with London Asia Capital plc ('LAC'). Under the agreement China IPO will provide management support to LAC in the form of The Earl of Cromer, Professor Gardin and Mr Bailey (three of six China IPO Directors) who have served on the Board of LAC since 18th December 2008.
Under the new terms China IPO will receive a success fee based solely on the return of cash to LAC shareholders. The Agreement provides that China IPO will receive a rising percentage fee (as shown in the table below) of the Cash returned to LAC shareholders on or before 31st December, 2012 except that the initial fee will be based on LAC shares subject to approval of the necessary Special Resolution by LAC shareholders.
|
Cash returned
£ million
|
Fee Rate
|
To be satisfied in
|
|
The first 0 - 5
|
5%
|
LAC shares (pending shareholders approval), otherwise in cash
|
|
The excess from 5 - 10
|
10% on such excess over £5m
|
Cash
|
|
The excess from 10 – 15
|
15% on such excess over £10m
|
|
|
The excess over 15 and above
|
20% on such excess over £15m
|
While the above terms are subject to China IPO Group plc providing the services of the three above mentioned directors to LAC plc Board, a separate agreement between China IPO Group plc and three directors will be signed and an announcement will be released accordingly.
For enquiries, please contact:
Roland Cornish, Beaumont Cornish Limited 020 7628 3396
This information is provided by RNS
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