Falklands : FIH Announces £10 Million for Falklands’ Investment
Submitted by Falkland Islands News Network (Juanita Brock) 07.07.2012 (Article Archived on 21.07.2012)
Falkland Islands Holdings is to invest £10 Million raised from the sale of FOGL shares and other sources in infrastructure in the Falklands. Currently Mr John Foster, Falkland Islands Holdings’ Managing Director is visiting the Falklands to see where the money would best be spent.
FIH Announce £10 Million for Falklands’ Investment
By J. Brock (FINN)
Falkland Islands Holdings is to invest £10 Million raised from the sale of FOGL shares and other sources in infrastructure in the Falklands. Currently Mr John Foster, Falkland Islands Holdings’ Managing Director is visiting the Falklands to see where the money would best be spent.
Falkland Island Holdings placing approved:
Falkland Island Holdings (LON:FKL) has won approval from shareholders to raise £10 million to revamp its assets in the Falklands ahead of anticipated build up in oil and gas activity.
David Hudd, Chairman of FIH said that the Board is very pleased to have received support from shareholders for this transaction which we believe will ensure that we are able to take advantage of the significant opportunities open to the Company in the development of the oil industry in the Falkland islands.
Sale of Falkland Oil and Gas Limited ("FOGL") Shares:
On 29 June 2012, FIH sold 1.18 million shares in FOGL for £1.01m, generating a profit of £0.77m for FIH were sold to add to the cash needed for investment. Following the sale, FIH owns 12.82 million shares in FOGL; representing 4.01% of the issued share capital. The funds will be available for the development of the Groups businesses in the Falkland Islands and the UK. The Board of FIH does not intend to dispose of any further shares in FOGL prior to the completion of the drilling of the Loligo well in the South Falkland basin.
"As a result of this disposal, we have more than recouped the further investment we made in FOGL in January this year and have generated a useful profit for the Group. The Subscription and Open offer announced by the Group on 14 June and this disposal have significantly enhanced the resources of the Group whilst retaining a substantial financial interest in FOGL and we look forward to their drilling campaign which is expected to commence in July 2012," Chairman of FIH, David Hudd commented.
Result of Open Offer:
Falkland Islands Holdings plc, announced that the open offer announced on 14 June 2012 closed for applications at 11 a.m. on 2 July 2012 and that the Open Offer of 619,837 shares has been fully subscribed . Valid applications have been received for 1,601,914 Offer Shares, being 258 per cent. of the amount available.
Basic entitlement applications for the 619,837 shares available amount to 487,393 shares, whilst excess applications for the 132,444 shares not applied for total 1,114,521 shares. As a result excess applications will be scaled back as provided in the Circular posted to shareholders on 14 June 2012 ("the Circular").
The Open Offer remains conditional upon inter alia Admission occurring by 8:00 a.m. on 4 July 2012 (or such later time or date as the Company may determine).
This announcement should be read in conjunction with the full text of the Circular, a copy of which is available on the Company's website at www.fihplc.com. Capitalised terms in this announcement have the meanings defined in the Circular.
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