Related Party Transaction

RNS Number : 8244I

Plastics Capital PLC

18 March 2010

 



For Immediate Release

18 March 2010

Plastics Capital plc

("Plastics Capital" or the "Company")

Related Party Transaction

In March 2008, Plastics Capital plc (AIM: PLA), through its subsidiary, Plastics Capital Trading Limited ("Plastics Capital Trading") acquired Palagan Limited ("Palagan") for a total consideration of £6.4 million, of which £0.5 million was deferred for two years and is now due. Certain Directors of Plastics Capital, being Faisal Rahmatallah, Arun Nagwaney, Andrew Walker and Richard Vessey have established a specially formed company ("NewCo"), to pay the deferred consideration and the accumulated interest of £52,510 on behalf of Plastics Capital Trading in consideration for Plastics Capital Trading undertaking to pay NewCo £552,510 within 6 months. Interest payable to NewCo on this sum will not exceed £33,151. This payment obligation is unsecured.

The payment to NewCo 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.

Commenting on the transaction, Faisal Rahmatallah, Executive Chairman, said:

"The Directors are pleased with the performance of Palagan since acquisition and have decided to handle the relatively small deferred consideration liability by substituting with new funds rather than increasing net bank debt. The Company has been reducing its net bank debt in line with expectations and is committed to a continuing reduction."

Plastics Capital plc Faisal Rahmatallah, Executive Chairman Nick Ball, Finance Director	Tel: [phone]
Cenkos Securities Stephen Keys, Beth McKiernan	Tel: [phone]
Buchanan Communications Richard Darby, Christian Goodbody	Tel: [phone]

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 and Japan. Approximately 50 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 285 employees.

Further information can be found on www.plasticscapital.com

 

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