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

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. 
 
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 GBP1 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. More over, 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: [phone] 
 
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 
 
 

(END) Dow Jones Newswires

March 20, 2020 05:26 ET (09:26 GMT)