Disposal of last plot of Policolor S.A. site

RNS Number : 6478N

Reconstruction Capital II Ltd

25 September 2019

 

25 September 2019

Reconstruction Capital II Limited

Disposal of last plot of Policolor S.A. site

Reconstruction Capital II Limited ("RC2" or the "Company") announces that its 40%-owned investee company Policolor S.A. ("Policolor") has today sold the last plot of land on its main Theodor Pallady Bulevard Bucharest site, comprising 3.2 hectares, for a total price of €5.2 million, of which an advance of €1 million had already been received over 2017 and 2018. Originally, Policolor was due to receive the remaining balance of €4.2 million in the summer of 2019.  However, pursuant to negotiations with the buyers, €3.4 million was received today, a further €0.1 million is due to be received in November 2019, and €0.7 million represents a "holdback" amount in respect of certain warranties and indemnities provided by Policolor, to be released, if applicable, in September 2020.  Policolor's bankers have agreed to Policolor paying out a dividend of up to €2 million out of the land proceeds, subject to certain conditions being met, of which RC2's share would be €0.8 million.  Policolor intends to make dividend payments to the extent permitted by its bankers over 2019-2020, subject to its cashflow allowing it to make such distributions.

For further information, please contact:

Reconstruction Capital II Limited

Cornelia Oancea / Anca Moraru

Tel: [phone]

Grant Thornton UK LLP  (Nominated Adviser)

Philip Secrett
Tel: [phone]

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

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