BLACK SEA PROPERTY PLC
("Black Sea Property" or the "Company")
Acquisition of various interests in ECDC Group
Black Sea Property PLC, the Bulgarian real estate investment company, is pleased to announce that it has signed an agreement to acquire 100% of European Convergence Development (Cayman) Limited ("ECD Cayman") and ECD Management (Cayman) Limited ("ECD Management") from European Convergence Development Company PLC ("ECDC") including outstanding debt of Eur 119,175,184 (a loan granted by ECDC) (the "Acquisition").
The consideration payable is EUR 3.3 million plus the net cash position in ECD Cayman (including its subsidiaries) and ECDC Management. Completion of the Acquisition is subject to various conditions including the acquisition of a minimum of 28.6% and a maximum of 29.9% of ECDC, at a price per share equal to the net asset value of the share (which is expected to be de minimis). The longstop date is 90 days from the date of execution of the agreement.
ECDC Cayman's main assets includes a 70% holding via a subsidiary, in two plots in Kraymorie, Burgas and the 100% holding in two plots in Plovdiv, which is currently valued at a minimum of Eur 3.3 million. ECDC Management is a director on the Board of two Bulgarian joint ventures (Targovski Park Kraimorie AD and Mega Mall Ruse AD).
The main rationale for the acquisition of interests in ECDC Group includes:
- The opportunity to add two development plots suitable for logistics/industrial development (the site in Plovdiv) and residential, commercial or hospitality development (the site in Kraimorie); and
- ECD Cayman and ECDC have established structures in place that will save time and costs i.e a fund structure and corporate structures for holdings in Bulgaria and Romania.
Alex Borrelli, Chairman of Black Sea Property, stated, "We are pleased to have agreed terms for this significant acquisition, after many months of discussions between the parties, which we expect to complete in the near future. This will add further development plots for the Company which in turn we believe will result in enhanced shareholder value."
The Directors of the issuer accept responsibility for the contents of this announcement.
For further information, please visit www.blackseapropertyplc.com or contact the following:
BLACK SEA PROPERTY PLC
Alex Borrelli - Chairman
+44(0) 774 702 0600
PETERHOUSE CORPORATE FINANCE LIMITED
NEX Corporate Adviser
Heena Karani, Fungai Ndoro and Duncan Vasey
+44 (0) 207 469 0930