AIM Admission Announcement
Providence Resources PLC
21 June 2005
Providence
Resources P.l.c.
Providence Resources P.l.c. ('Providence' or 'the Company')
•Publication of AIM Admission Document
•Admission to London Stock Exchange's AIM effective from 24 June
•Proposed investment of €3 million by Sir Anthony O'Reilly
•Extraordinary General Meeting to be held on 8 July 2005
Providence is today pleased to announce that it has published its Admission
document ('AIM Admission Document') in connection with application for admission
of its entire issued ordinary share capital to the Alternative Investment Market
of the London Stock Exchange ('AIM'). It is expected that admission to AIM will
become effective and trading will commence in the Ordinary Shares of Providence,
on AIM, on Friday, 24 June, 2005.
Reasons for Admission to AIM
Admission to AIM will facilitate the transfer of dealings in Providence
securities from the Bulletin Board in the UK (a facility for non-UK quoted
international stocks) to the SEAQ platform, will enable the Company to be
considered for certain AIM indices, and will introduce the Company to a new pool
of potential investors.
The Board believes that admission of Providence to AIM will also contribute to
enhancing the profile of the Company in the UK, where it already has an
established shareholder base. A higher profile will additionally raise awareness
of Providence and its activities amongst potential new investors and should
improve the terms on which the Company can raise capital.
In the 10 years since 1995 when the market was established, AIM has grown
significantly. It now has over 1,197 companies, with a combined market cap of
approximately Stg£35.84 billion (at 31 May, 2005). AIM is a global centre for
the industry with 59 oil and gas companies quoted and a total of 174 companies
operating in the broader resource area (at 31 May, 2005).
Commenting on the AIM introduction, Dr. Brian Hillery, Chairman of Providence
said:
'Providence is in an exciting phase of its development with
geographically diversified assets and prospects with different
exploration and production timetables.
'Listing on AIM is a key step in showing our strong portfolio to the
global financial community, Not only do we have a near-term term
drilling programme on the Aje Prospect in Nigeria but we also have
significant exploration and appraisal opportunities in Ireland (in the
Celtic Sea, St. George's Channel and the Porcupine Basin) as well as in
the UK (the Singleton onshore oil field plus 3 North Sea licences).
We look forward to further developments in our operations which will
drive shareholder value. The introduction of the Company to AIM
therefore, we believe, occurs at a particularly opportune time in the
Company's history.'
Enhanced Financial Flexibility for Group
The Board has been advised that Sir Anthony O'Reilly has acquired a total of
66,218,766 warrants. These warrants, which were acquired from existing warrant
holders, will, when exercised, entitle the holder thereof to 1 new Ordinary
Share at an exercise price of €0.045 per Ordinary Share.
Sir Anthony O'Reilly has committed to the Company that he will exercise these
warrants, investing approximately €3 million of cash for these shares. This
investment is subject to independent shareholder approval under the terms of a
waiver granted by the Irish Takeover Panel ('Waiver'). The Waiver will, inter
alia, permit the percentage increase in the holding of Sir Anthony O'Reilly
arising from his exercise of the warrants without creating an obligation to make
an offer for the balance of the issued ordinary share capital of the Company.
Such an injection of cash will provide the Company with important additional
financial flexibility in the implementation of its 2005 work programme (details
of which are contained in the AIM Admission Document) and will also facilitate
the removal of the overhang in the market represented by these warrants. The
Board believes that this overhang has impeded the Company's share price
performance and its removal should, particularly in the context of the Company's
introduction to AIM, contribute to stimulation in the trading of the Company's
securities.
Extraordinary General Meeting
The Company intends to shortly send to shareholders a document convening an
extraordinary general meeting of the Company at which independent shareholder
approval to the Waiver would be sought. This EGM will be held on 8 July 2005.
Documentation
Copies of the AIM Admission Document will be available to the public for
collection, free of charge, at the offices of Matheson Ormsby Prentice
Solicitors at 30 Herbert Street, Dublin 2, Ireland and the offices of Matheson
Ormsby Prentice Solicitors, Pinnacle House, 23-26 St Dunstan's Hill, London EC3R
8HN, United Kingdom until at least one month after admission to AIM.
Copies of the AIM Admission Document will also be available for download from
the Company's website at www.providenceresources.com
Ends Tuesday, 21st June 2005.
Contacts:
Providence Tel: +353 1 6675740
Dr. Brian Hillery, Chairman
Tony O'Reilly Jnr, Deputy Chairman
Stephen Carroll, Finance Director
Powerscourt Tel: +44 (0) 207 236 5615
Rory Godson Mob: +44 (0) 7909 926 020
Victoria Brough Mob: +44 (0) 7967 044 840
Murray Consultants Tel: +353 1 498 0300
Pauline McAlester
Davy Tel: + 353 1 679 6363
Eugenee Mulhern
Stephen Barry
This information is provided by RNS
The company news service from the London Stock Exchange