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Medsea Estates

  • BY: Andrew Hore |
  • POSTED: 22/04/2009 |

Medsea Estates’ non-executive director has resigned and withdrawn his ‘fair and reasonable’ opinion in the circular for the disposal of the operating businesses.

Neil Craven said that he wanted to withdraw his opinion after the circular had been sent and he resigned one day later. The company is no longer in compliance with AIM rules. An additional circular will be sent to shareholders. Medsea also hopes to appoint another independent non-executive director.

Medsea is likely to lose its Aim-quotation on 7 May 2009, following the resignation of its nominated adviser HB. The shares were suspended at 0.18p each on 6 April 2009, which values the Spain-based estate agency at £140,000.

The executive directors of Medsea Estates re proposing to buy the operating subsidiaries for €1 plus deferred consideration of 15% of any capital or income distributions relating to the sale of development properties. The deferred period lasts five years. The percentage payment is reduced by 3% each year following the end of the five year period. The benefit of this deferred consideration will as far as practicable be secured for the minority shareholders - excluding the current executive directors and their families.

The deferred consideration could be worth €1.3m - equivalent to 8p a share held by minority shareholders - but there is no certainty that this estimate will be met.

Chairman Tony Gatehouse owns 70% of Medsea Estates. In all, executive directors and family own 82.4% of Medsea. Andrew Meikle intends to acquire these shares and turn the company into a shell which intends to buy fund management businesses in developing countries. His business Maji will lend Medsea £120,000 to help pay off creditors - if they accept 60p in the pound.

The EGM is planned for 30 April 2009. If the proposals are passed Medsea will change its name to AIM Investments. 

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