DBAY Douglasbay

TIDMDBAY

RNS Number : 2602Y

Douglasbay Capital PLC

28 February 2012

28 February 2012

DOUGLASBAY CAPITAL PLC (the "Company")

Update on implementing its investment policy and suspension from AIM

Following the disposal of the investment in TDG (DBAY's principal investment) on 28 March 2011, DBAY had a year under the AIM Rules to implement its investing policy and in the event that the proceeds were not substantially reinvested the Company would be suspended from trading on AIM.

In May 2011, DBAY returned approximately GBP197.5m to shareholders by way of a tender offer, leaving the Company with Net Assets of GBP24.6m, of which GBP15.1m comprised cash resources. Since then additional cash proceeds of GBP5.4m were generated through the sale of two further properties. Whilst the Company is currently reviewing a number of investment opportunities, at this point in time it is not expected that DBAY will have substantially reinvested the proceeds by the end of the 12 month period. The Board therefore, expects that DBAY will be suspended from trading on AIM at 7.30 a.m. on 29 March 2012 (the "Suspension").

DBAY intends to continue assessing opportunities with the intention of implementing its investment policy whilst the Ordinary Shares are suspended from trading on AIM. Whilst the shares are suspended from trading on AIM off market transactions may be possible. Shareholders should note that following the Suspension, the Ordinary Shares will not be restored to trading on AIM unless the investment policy is implemented within six months from date of Suspension.

However, if suitable investments are not identified and completed in the six month period post suspension the shares of the Company ("Ordinary Shares") will be cancelled from trading on AIM. In this eventuality the Company will engage in a dialogue with its main shareholders on how best to return its capital in the most efficient way.

As at the date of this announcement the unaudited net asset value of DBAY is approximately GBP22m (13.2 pence per share) and this is underpinned by approximately GBP16.5m in cash resources (9.8 pence per share). The balance of the net assets comprises minority holdings in quoted companies and one freehold property, and is stated after the impairment in the value of some unlisted minority investments.

For further information please contact:

 
 DouglasBay Capital plc          Peel Hunt LLP ((Nominated 
                                  Adviser & Broker) 
 Alex Paiusco, Chief Executive   Guy Wiehahn 
  Mike Haxby, CFO 
 Tel: 01624 690900               Tel: 020 7418 8893 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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