Proposed Share Consolidation
HERMES PACIFIC INVESTMENTS PLC
Proposed Share Consolidation
Hermes Pacific Investments plc (“HPAC” or the “Company”) announces that it has posted to shareholders a circular setting out details of a proposed share consolidation and notice of a general meeting to approve the proposed share consolidation
The Company is proposing to carry out a share consolidation such that every 200 Existing Ordinary Shares will be consolidated into one New Ordinary Share.
The Company’s share capital is currently divided into shares of 0.5 pence. Its share price is very low and the Company trades as a “penny stock”.
The Board believes that the market in its shares generally would be enhanced if its share price was higher and it was no longer a “penny stock”.
Accordingly the Board proposes to undertake a share consolidation of every 200 of its Existing Ordinary Shares into one New Ordinary Share.
The Board considers that the Share Consolidation will be beneficial as it will reduce the size of the issued ordinary share capital of the Company, thereby making it more manageable and improve the attractiveness of the Company’s shares to new investors.
As at the close of business on Wednesday, 14 August 2013, the mid-market price of one Existing Ordinary Share was 1.125 pence. Once the Share Consolidation has taken place, the price of a New Ordinary Share would be expected to be 200 times that of an Existing Ordinary Share.
It is proposed that the Share Consolidation will become effective from close of business on Monday, 9 September 2013 and that dealing in the New Ordinary Shares will, subject to approval of the resolution to be proposed at the General Meeting, take effect from 8 a.m. on Tuesday, 10 September.
Most shareholders will not hold a number of Existing Ordinary Shares that is exactly divisible by 200 and they will be left with fractional entitlements to the resulting Ordinary Shares if the resolution is approved. These fractional entitlements will be aggregated and sold in the market on behalf of Shareholders and, where the amount of the proceeds is £3.00 or more, the proceeds of the sale will be returned to them. Proceeds of less than £3.00 will be retained by the Company to offset the costs of undertaking the Share Consolidation. Shareholders should be aware that if they hold fewer than 200 Existing Ordinary Shares as at close of business on 9 September 2013 they would not be entitled to receive any New Ordinary Shares under the Share Consolidation and as a result would no longer have any interest in the Company.
It is intended to issue certificates in respect of the New Ordinary Shares by no later than 17 September 2013, at the same time as the despatch of the fractional cheques or credit of CREST members’ accounts in respect of fractional sale proceeds. New Ordinary Shares due to uncertificated shareholders will be credited to the relevant stock accounts on 10 September 2013.
The Definitions which apply in the Circular have been used in this announcement. The Circular can be viewed on the Company’s website, www.hermespacificinvestments.com
For further information please contact:
Hermes Pacific Investments Plc
Haresh Kanabar, Non-Executive Chairman Tel: +44 (0) 207 290 3340
WH Ireland Limited (Nominated Adviser & Broker) Tel: +44 (0) 117 945 3470
Marc Davies/ Mike Coe