TXO PLC GBG Further Investment (6451X)
12 Febrero 2013 - 1:01AM
UK Regulatory
TIDMTXO
RNS Number : 6451X
TXO PLC
12 February 2013
FOR IMMEDIATE RELEASE 12 February 2013
TXO PLC
("TXO" or the "Company")
TXO SHAREHOLDING IN THE GRAND BAHAMA GROUP LIMITED NOW
30.17%
Construction of Hydrocarbon Recovery Plant commenced
The Board of TXO Plc ("TXO") is pleased to announce that it has
completed a further investment in Grand Bahama Group Limited
("GBG"). The Company has purchased a further 100 ordinary shares
for a consideration of GBP700,000 being settled through GBP350,000
in cash and GBP350,000 though the issue of 116,666,667 Ordinary
Shares in TXO at an issue price of 0.30p per Ordinary Share. The
additional investment represents a further 6.53% shareholding in
GBG and takes TXO's equity holding in GBG to 30.17%.
The investment by TXO in GBG will be directed to its wholly
owned subsidiary, Morgan Oil Marine, for the construction of a
Hydrocarbon Recovery Plant ("HRP") in Freeport. For the period from
1 January to 12 September 2012 GBG recorded a loss of $433,850 on
turnover of $291,643 and had net assets of $337,662 at the period
end.
TXO's investment in GBG will continue to be accounted for using
the equity method. Initial recognition is at cost, but thereafter
at each reporting period the investment value is adjusted to
recognise TXO's share of the profit or loss and assets for that
period, and tested for impairment if necessary.
The Company has agreed a new option to acquire a further 268
ordinary shares in GBG at the same valid price to the end of
December 2013. If the option is exercised, it would increase TXO's
total holding in GBG to 43.18%.
The 116,666,667 Ordinary Shares have been issued and allotted to
GBG which represents 11.04% of TXO's enlarged share capital. GBG's
holding in TXO now totals 130,000,000 Ordinary Shares, representing
12.40% of TXO's current issued share capital. Application has been
made for the new shares to be admitted to trading on AIM on 18
February 2013.
David Morgan, Chairman of Grand Bahama Group Limited
commented:
"We are grateful to TXO for this additional investment.
Additionally, we are delighted to announce that Morgan Oil Marine
has now commenced construction of its new Hydrocarbon Recovery
Plant, scheduled to complete second quarter of 2013. In the
interim, the 1m-gallon capacity Barge Martha and the 20,000-gallon
capacity Tug Victoria have commenced the limited collection of
ships slops and used lubricant whilst the crews are undergoing sea
trials. This will generate positive cash flow that may help reduce
any requirement for further equity investment. However, we have
agreed to extend the Option to allow the maximum flexibility in
this regard. "
Tim Baldwin, Chief Executive and Chairman of TXO Plc
commented:
"We are pleased to be able to announce that we have increased
our equity stake in GBG to 30.17% and extended an option that will
allow us to increase our stake to 43.18% in the future. GBG is a
low risk, cash generative business that helps to balance the TXO
portfolio."
For further information, please contact:
TXO PLC
Tim Baldwin, Chairman +44 (0) 207 518 4300
Fox-Davies Capital Limited +44 (0) 203 463 5000
Simon Leathers (Nominated Adviser)
Daniel Fox-Davies / Richard Hail
Lothbury Financial Services Limited
Michael Padley / Chris Roberts +44 (0) 203 440 7620
This information is provided by RNS
The company news service from the London Stock Exchange
END
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