REG - Minoan Group PLC - Update

MinoanAnnouncement

31/08/2018 07:05

RNS Number : 3313Z
Minoan Group PLC
31 August 2018
 


31 August 2018
Minoan Group Plc
("Minoan" the "Group")
 
Update - Debt Finance and Sale of Travel & Leisure ("T&L") Business
 
Minoan is pleased to report that, following a period of negotiation, it expects to conclude imminently Heads of Terms, including exclusivity, for the sale of its T&L business, Stewart Travel Limited. The sale will be subject to shareholder approval.
Following the consideration of approaches from other prospective buyers, negotiations have been taking place in good faith with the Group's primary lender, Zachary Asset Holdings Limited to buy T&L, notwithstanding that the debt facility has been extended only to 31 August 2018. In the circumstances, the Board does not believe that the loan will be called pending the completion of negotiations and the culmination of the transaction, which should see it repaid in full.
Subject to agreement, the Board expects to make an announcement immediately the final terms are agreed.
 
In the meantime, and in accordance with the Chairman's Statement included in the Interim Results Announcement on 31 July, the Group has commenced the cost restructuring exercise referred to therein. The first action being that the fees in respect of the Chairman's services will be reduced by 50%, effective immediately. This will continue until such time as there is a significant monetisation event in relation to the Project.
 
As stated, following a sale on the expected terms, the Group expects that it will have completely repaid its secured loan facility and removed a major source of future dilution, albeit at the expense of an immediate increase in the issued capital, which will not affect the fully diluted figure.
 
 



Minoan Group Plc








Christopher Egleton


christopher.egleton@minoangroup.com




Duncan Wilson


duncan.wilson@minoangroup.com




Bill Cole


william.cole@minoangroup.com














WH Ireland Limited


020 7220 1666




Adrian Hadden/Chris Viggor


















Cornhill Capital Limited


020 7710 9610




Daniel Gee


















Morgan Rossiter


020 3195 3240




Richard Morgan Evans







 




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