REG-R.E.A. Holdings plc R.E.A. Holdings plc: Further re preference dividend

R E A HoldingsAnnouncement

20/03/2020 09:30

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   R.E.A. Holdings plc (RE.)
   R.E.A. Holdings plc: Further re preference dividend

   20-March-2020 / 09:26 GMT/BST
   Dissemination of a Regulatory Announcement that contains inside
   information according to REGULATION (EU) No 596/2014 (MAR), transmitted by
   EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   R.E.A. Holdings plc ("REA Holdings" or the "company")

   Further announcement re preference dividend

   The company announced in the trading update issued on 7 February 2020
   that, subject to certain criteria being met, the directors planned
   progressively to catch up the arrears of dividend on the on the 9 per cent
   cumulative  preference shares of £1 each in the capital of the company
   (the "preference shares") commencing in 2020, with an initial payment of
   one per cent per preference share at the end of March 2020.  Among the
   criteria to be met was a requirement that substantially all the 8.75 per
   cent guaranteed sterling notes 2020 issued by the company's wholly owned
   subsidiary REA Finance B.V. (the "sterling notes") were successfully
   refinanced. 

   The company further announced, on 6 March 2020, concurrently with the
   announcement of proposals as regards the extension of the repayment date
   for the sterling notes (the "sterling note refinancing proposals"), that,
   upon the sterling note refinancing proposals becoming effective, the
   sterling notes would be considered to have been "successfully
   refinanced".  Accordingly, subject to the sterling note refinancing
   proposals becoming effective and to the other previously announced
   criteria for proposals as regards the payment of dividends in respect of
   the preference shares being met, the directors planned to declare the
   proposed dividend of one per cent per preference share as soon as the
   sterling note refinancing proposals have become effective, for payment
   approximately four weeks later (that is, on or around 29 April 2020).

   Since the announcement on 6 March 2020, concerns about COVID-19 have
   escalated dramatically while the crude palm oil ("CPO") price has fallen
   further to a current level of approximately $600 per tonne (CIF
   Rotterdam).  That compares with the price on 7 February 2020 of $820. 
   Whilst the company continues to believe that there will, in due course, be
   a strong recovery in CPO prices from the current low level, the measures
   now being implemented to control the spread of COVID-19 make it likely
   that recovery will take longer than the company originally hoped. 
   Moreover, the continuing disruption of international financial markets is
   likely to limit access to those markets until greater control of the virus
   has been achieved.

   In light of the current economic environment, the company will give
   further consideration to the timing of the planned dividend payment of one
   per cent per preference share and will make a further announcement as
   regards such preference dividend in due course.

   Enquiries:
   R.E.A Holdings plc
   Tel: 020 7436 7877

    

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   ISIN:          GB0002349065
   Category Code: FUR - R.E.A. Holdings plc
   TIDM:          RE.
   LEI Code:      213800YXL94R94RYG150
   Sequence No.:  53641
   EQS News ID:   1002775


    
   End of Announcement EQS News Service

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