DGAP-Adhoc
Asian Bamboo plans to reduce the plantation size
Asian Bamboo AG / Key word(s): Miscellaneous
23.03.2014 15:59
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Asian Bamboo plans to reduce the plantation size
- In order to improve the financial situation ahead of entering the
property industry, Asian Bamboo decides to decrease the plantation size
- The FY 2013 annual results announcement and AGM will be delayed to 30
April and 20 June respectively
Hamburg, 23 March 2014 - Asian Bamboo AG ("Asian Bamboo", "the Company",
ISIN: DE000A0M6M79, ticker symbol: "5AB", ADR ticker symbol "ASIBY"), a
leading integrated company in the bamboo industry, is pleased to announce
that it has reached a preliminary agreement to sell some of its plantations
and give up its rights to some others, which, once completed, will improve
the Company's financial situation ahead of entering the property industry.
The Company's Supervisory Board approved the move on 22 March and the
Management Board will now aim to complete the deals as soon as possible. In
detail the plan is to:
- Give up the rights to the following plantations in the Longyan area;
Buyun, Hongshan and Miaoqiao ("Longyan plantations"), in total around
62,600 mu (4,173 hectares)
- Sell the following plantations in Shaowu; Kangda, Sirong, Minxian,
Minda, Yinxin and Wufang (Shunchang) and Wucun (Sanming), Chongan
(Wuyishan) and Hongshan (Longyan) ("Shaowu plantations") in total
around 194,330 mu (12,955 ha) at market prices
Upon completion, based on the Management Board's estimates, the Company
will not have to pay the remaining lease fee of EUR 9.5 million on the
Longyan plantations, which was booked as an account payable at the end of
FY 2013 and more than EUR 10 million will be raised from selling the Shaowu
plantations.
The Shaowu plantations and the Longyan plantations have in total
accumulated significantly more profits than their total lease fees over the
lease period. Only plantations with a short remaining lease period and
plantations which currently generate a relatively low return are affected.
Therefore the Management Board believes that the future impact on the
Company's P&L once these transactions are completed will be much smaller
than the impact of the corresponding decrease in the plantation size. The
- In order to improve the financial situation ahead of entering the
property industry, Asian Bamboo decides to decrease the plantation size
- The FY 2013 annual results announcement and AGM will be delayed to 30
April and 20 June respectively
Hamburg, 23 March 2014 - Asian Bamboo AG ("Asian Bamboo", "the Company",
ISIN: DE000A0M6M79, ticker symbol: "5AB", ADR ticker symbol "ASIBY"), a
leading integrated company in the bamboo industry, is pleased to announce
that it has reached a preliminary agreement to sell some of its plantations
and give up its rights to some others, which, once completed, will improve
the Company's financial situation ahead of entering the property industry.
The Company's Supervisory Board approved the move on 22 March and the
Management Board will now aim to complete the deals as soon as possible. In
detail the plan is to:
- Give up the rights to the following plantations in the Longyan area;
Buyun, Hongshan and Miaoqiao ("Longyan plantations"), in total around
62,600 mu (4,173 hectares)
- Sell the following plantations in Shaowu; Kangda, Sirong, Minxian,
Minda, Yinxin and Wufang (Shunchang) and Wucun (Sanming), Chongan
(Wuyishan) and Hongshan (Longyan) ("Shaowu plantations") in total
around 194,330 mu (12,955 ha) at market prices
Upon completion, based on the Management Board's estimates, the Company
will not have to pay the remaining lease fee of EUR 9.5 million on the
Longyan plantations, which was booked as an account payable at the end of
FY 2013 and more than EUR 10 million will be raised from selling the Shaowu
plantations.
The Shaowu plantations and the Longyan plantations have in total
accumulated significantly more profits than their total lease fees over the
lease period. Only plantations with a short remaining lease period and
plantations which currently generate a relatively low return are affected.
Therefore the Management Board believes that the future impact on the
Company's P&L once these transactions are completed will be much smaller
than the impact of the corresponding decrease in the plantation size. The
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