Related Party Transaction

RNS Number : 7415K

Plastics Capital PLC

20 July 2011

 



For Immediate Release                                                                      20 July 2011

Plastics Capital plc

("Plastics Capital" or the "Company")

Related Party Transaction

Plastics Capital plc (AIM: PLA) the niche plastics products manufacturer, announced today that it has repaid the PLA4 Limited deferred consideration of £643,008. 

In March 2008, Plastics Capital acquired Palagan Limited for a total consideration of £6.4 million, of which £0.5 million was deferred for two years.  As set out in an announcement made in March 2010, certain Directors of Plastics Capital established a specially formed company, PLA4 Limited ("NewCo"), to pay the deferred consideration and the accumulated interest on behalf of Plastics Capital Trading Limited in consideration for Plastics Capital Trading Limited undertaking to pay NewCo this amount plus further accumulated interest before March 2013.

The payment to PLA4 Limited constitutes a Related Party Transaction pursuant to AIM Rule 13.  Nick Ball, the Group Finance Director of Plastics Capital, and for the purposes of this transaction an independent director, considers that, having consulted with its nominated adviser, the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.

Plastics Capital plc                                                                 Tel: [phone]

Faisal Rahmatallah, Executive Chairman

Nick Ball, Finance Director

Cenkos Securities (Nominated Adviser)                               Tel: [phone]

Stephen Keys

Elizabeth Bowman

Buchanan Communications                                                    Tel: [phone]

Richard Darby

Christian Goodbody

Notes to Editors

Plastics Capital is a consolidator of plastics products manufacturers focused on proprietary products for niche markets.  The Group has four factories in the UK, one in Thailand and sales offices in the USA, Japan, China and India.  Approximately 62 per cent of sales are exported to over 70 countries worldwide.  Production is concentrated in the UK where significant engineering know-how and automation underpins the Group's competitiveness.  The Group has approximately 300 employees.

Further information can be found on www.plasticscapital.com

 

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