Storm Real Estate ASA hereby issues a Detailed Announcement
in accordance with the Continuing Obligations of listed
companies section 3.4
1. Transaction and Parties
As announced on 7 December 2015, the Storm Real Estate group
has via subsidiaries agreed a sale on 100% of the shares in
Pete Ltd who owns CJSC Grifon and thus the Grifon Building
in St Petersburg. The buyers are companies of the PSI Cro
group, Switzerland. The parties expect the closing to be
done on 15 December 2015. It is not expected that the
transaction will trigger any statutory obligations or
requirement on either party.
2. The purchase price
The transaction will be done as a sale of receivables
towards group entities and shares in the subsidiary Pete
Ltd. The total consideration is 13.2 million USD, which
implies a gross property value for Storm Real Estate of 14.1
million USD, when liquid assets are subtracted and
recognised deferred tax is added. The settlement is in cash
and without major representation and warranties. Bank
borrowings related to the Grifon House of USD 10.0 million
USD will be repaid as part of this transaction.
3. Further description of the companies and
transaction.
The selling entities Tiberton Yard Ltd and Tiberton Yard
Holding 2 Ltd are wholly owned group companies o the Storm
Real Estate group. Grifon House is an office building in St
Petersburg which is near 100% let to LLC PSI, which is an
affiliated company to the buyer.
Pete Ltd is a holding company without any other business
than the ownership of the shares in CJSC Grifon. Key figures
for the subsidiary CJSC last three years, as they were
recognised in the consolidated group accounts are shown
below (numbers in 000 USD).
Revenues
2014: 2.882
2013: 2.987
2012: 2.984
Annual profit (excl fair value adjustments, building)
2014: 1.029
2013: 760
2012: 501
The board of directors of Tiberton Yard Ltd consists of Erik
M Mathiesen. The board of Tiberton Yard Holding 2 Ltd
consists of Erik Mathiesen, Nataly Nestoros and Suzanne
Kalogreades. There is one person employed by CJSC Grifon.
4. Background and consequences of the transaction
The transaction means that the Storm Real Estate group is
selling a significant asset. The decision for the sale was
an overall assessment of the price, terms, debt and general
economic and political risk. The sale price will be used to
repay debt and provide better security and flexibility for
the company's future operations.
5. About agreements with directors or senior executives in
relation to the transaction
No agreements have been entered into with any related
parties in connection with the transaction.
For further information, please contact:
Erik Mathiesen
Storm Capital Management Ltd.
erik@stormcapital.co.uk
Telefon: +44 (0) 20 7409 3375
Einar Pedersen
Storm Capital Management Ltd.
einar@stormcapital.co.uk
Telefon: +44 (0) 20 7409 3369