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Tejoori Limited  -  TJI   

MOU signed for proposed disposal of Arjan Plot

Released 08:47 05-Jan-2017

RNS Number : 4278T
Tejoori Limited
05 January 2017
 

 

This announcement contains inside information as stipulated under the Market Abuse Regulation
(EU) No 596/2014 (MAR).

 

5 January 2017

Tejoori Limited

("Tejoori" or the "Company")

 

Update on Arjan Plot - Proposed Disposal of remaining Arjan plot

 

 

The Board of Tejoori (AIM:TJI), the Dubai-based Shari'a-compliant investment company, announces that the Company has entered into a memorandum of understanding, dated 31 December 2016, (the "Agreement") with Mr Mohammad Ali Abdulla (the "Buyer") pursuant to which it has conditionally agreed to dispose of the remaining Arjan plot of land (the "Arjan Plot") currently owned by Tejoori and part of Tejoori's investment portfolio, for a gross cash consideration of approximately US$5.8 million (the "Consideration") (the "Proposed Disposal"). Under the terms of the Agreement both parties have undertaken to complete the Proposed Disposal within 60 days of the date of the Agreement.

 

The Arjan Plot currently owned by Tejoori comprises one plot of land in Al Barsha South Third in Arjan, a commercial and residential property community development within Dubai Land in Dubai, United Arab Emirates. Tejoori acquired this plot in December 2012 along with two other Arjan Plots. As announced on 3 May 2016, the Company sold one of the three Arjan plots of land for a cash consideration of US$6.5 million. On 22 December 2016, the Company completed the sale of the second Arjan Plot for a cash consideration of US$3.7 million.

 

The Arjan Plot that is subject of the Proposed Disposal had a book value of US$4.14 million in Tejoori's accounts as at 30 June 2016 and had a total ground floor area of approximately 355,209 sq ft. No development has taken place on the plots to date and, in the latest published accounts for the 12 months ended 30 June 2016, the three plots owned by Tejoori during the financial period did not contribute any revenue to Tejoori, incurred a loss on revaluation of US$2,901,592 and realised a loss on sale of property of US$180,747.

 

The Buyer is a national of the United Arab Emirates ("UAE") and he has a number of years of experience of trading in properties and land in the UAE.

 

The Consideration for the Proposed Disposal under the terms of the Agreement is a cash consideration of 21,312,540 dirhams (equivalent to approximately US$5,802,330 at the prevailing exchange rate on 4 January 2017) payable on completion of the Proposed Disposal. The Company has not, as yet, received the cash in relation to the Proposed Disposal.

 

Completion of the Proposed Disposal remains conditional on, inter alia, Tejoori and the buyer receiving the necessary approvals from the Dubai Land Department, the transfer of the title deeds to the Buyer being effected and receipt of the cash from the buyer. The terms and conditions of the Agreement are binding on both parties and modifications to the Agreement can only be made by written agreement between the parties.

 

Following completion of the Proposed Disposal, the Company will have no ownership in any of the Arjan Plots and will have disposed of its entire investment portfolio.

 

The Board intends to use the net proceeds from the Proposed Disposal, which are estimated to be approximately US$5.7 million, to provide the Company with additional working capital and to supplement the intended return of cash to shareholders that has previously been announced. As detailed in the announcement of the Company's full year results on 29 December 2016 the Company intends to, following completion of the sale of this remaining Arjan Plot, proceed with returning to shareholders a proportion of the cash generated from the sale of the three Arjan Plots. Any future return of cash to Tejoori shareholders will be undertaken as a separate transaction after the Proposed Disposal has completed. There is no guarantee at this stage that any return of cash to shareholders will take place and shareholders will be updated at the appropriate time.

 

Further announcements will be made at the appropriate time regarding the Proposed Disposal.

 

For further information:

 

Tejoori Limited

Tel: +971 4 2839316

Abdullah Lootah, CEO

ceo@tejooriltd.ae



Allenby Capital Limited

(Nominated Adviser and Broker)

Tel: +44 (0)203 328 5656

Nick Athanas/Charles Donaldson


 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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MOU signed for proposed disposal of Arjan Plot - RNS