Circ re. Reduction of Share Premium Account

RNS Number : 6211H

Terrace Hill Group PLC

13 July 2012

 



 Terrace Hill Group plc

("Terrace Hill" or the "Company")

PROPOSED REDUCTION OF SHARE PREMIUM ACCOUNT

and
NOTICE OF GENERAL MEETING

Terrace Hill (AIM: THG), a leading UK property development and investment group is pleased to announce that, in line with its statement at the time of its half year report in June 2012, it has today posted a circular to shareholders convening a general meeting (the "General Meeting") at which it will propose a reduction in the Company's share premium account.

As mentioned in June, the Board wishes to resume a progressive dividend policy in due course that reflects the then current trading and prospects, cashflow and commitments without the restrictions otherwise caused by the results of historical trading.  Therefore, it is proposed that £25.0 million of the Company's share premium account be cancelled in order to eliminate the current deficit on its profit and loss account and to create distributable reserves from which future dividends could be paid or against which any future losses can be offset (in each case, up to the extent of that reserve) ("the Capital Reduction"). The Capital Reduction will require shareholder approval and approval by the Court of Session in Edinburgh and an application will be made to the Court of Session in Edinburgh immediately following the General Meeting, provided that the resolution is passed.

The General Meeting is to be held at 1 Portland Place, London W1B 1PN at 9 a.m. on 2 August 2012.  Shareholders are requested to complete and return the Form of Proxy enclosed with the circular to the Registrars in accordance with the instructions printed on it as soon as possible and, in any event, so as to be received no later than 9 a.m. on 31 July 2012.  Completion and return of the Form of Proxy will not preclude you from attending the General Meeting and voting in person.  If the resolution is passed, it is envisaged that the approval by the Court of Session in Edinburgh will occur during September 2012.

The Board is of the opinion that the Capital Reduction is in the best interests of the Company and Shareholders as a whole and, accordingly, unanimously recommends Shareholders to vote in favour of the resolution, as the Directors intend to do in respect of their own holdings of shares, representing in aggregate 64.77% of the share capital of the Company. Further details are set out in the circular which has been posted to shareholders today and is also available to download from the Company's website, www.terracehill.co.uk. 

For further information please visit www.terracehill.co.uk or contact:

Philip Leech/Jon Austen                                                                        

Tel. [phone]

Terrace Hill Group PLC

Gareth Price/Mark Young                                                                                             

Tel: [phone]

Oriel Securities (Nominated Adviser)                  

 Notes for editors:

Terrace Hill Group

Terrace Hill Group PLC is a regionally based UK property development and investment group quoted on AIM.  Formed in 1986, the Company has five offices located in London, Glasgow, Teesside, Bristol and Manchester.

 

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