Notice of General Meeting
AssetCo plc, (AIM : ASTO) the integrated support services business, announces today that it proposes to raise approximately £15 million (before expenses) through the issue of preference shares by AssetCo Abu Dhabi, its wholly owned subsidiary, in order to support its activities in Abu Dhabi. The Company will later today send a circular to shareholders seeking approval for the increase in the authorised share capital and the authority for Directors to issue 24,509,802 warrants each exercisable at a price of 61.2 pence per Ordinary Share. A General Meeting of the Company will be held at 800 Field End Road, South Ruislip, Middlesex HA4 0QH on Wednesday 28 January 2009 at 10.00 a.m.
As announced previously, the Board is actively pursuing development opportunities outside the UK and particularly in the Middle East with the intention of securing long term integrated support service contracts.
The investment proceeds will be used to satisfy any pre-contract liquidity requirement relating to the working capital requirements of a range of integrated support services which the Group has been negotiating to provide to the Fire and Rescue Service of the Abu Dhabi Police.
It is anticipated that during the course of 2009 evaluation work in respect of these services will continue. Any eventual contract is not likely to contribute to Group earnings until the year ending 31 March 2011 and beyond. There can, however, be no guarantee that these negotiations will lead to any contract award.
Commenting today, John Shannon, Chief Executive Officer said:
"We are pleased to have been able to secure this investment which allows us to progress our negotiations with the Abu Dhabi Police and to specifically demonstrate our ability to comfortably address any potential long term contract liquidity requirement. We are confident that we have excellent prospects in developing a long term working relationship with Abu Dhabi Police and delivering a significant level of business.
Despite difficult market conditions, we continue to view the Company's prospects with confidence."
AssetCo plc Tel: +44 (0) 20 8515 3999
John Shannon, Chief Executive Officer
Frank Flynn, Financial Director
James Collins, Investor Relations
RBS Hoare Govett Limited Tel: +44 (0) 20 7678 8000
Pelham PR Tel: +44 (0) 20 7743 6670