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Company Great Eastern Energy Corp Ltd TIDM

GEEC

Headline Rights Issue Released 16:26 21-Nov-2011 Number 4855S16

RNS Number : 4855S

Great Eastern Energy Corp Ltd

21 November 2011

21 November 2011
THIS
ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR
RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRE CTLY, IN OR INTO
THE UNITED STATES OF
AMERICA, AUSTRALIA, CANADA OR
JAPAN
OR ANY
JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION IS UNLAWFUL.
THIS ANNOUNCEMENT DOES NOT CONSTITUTE, OR FORM PART OF, AN OFFER OF,
OR THE SOLICITATION OF AN OFFER TO BUY OR SUBSCRIBE GLOBAL DEPOSITORY RECEIPTS (GDR)
FOR SHARES OR

Great Eastern Energy Corporation Limited ("Great Eastern" or "the Company") Rights issue of New Ordinary unlisted Shares to raise £8.3 million

Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian
Coal Bed Methane (CBM) company announces a proposed fully underwritten rights issue
(the "Rights Issue") of 1,500,000 new
ordinary unlisted shares of INR10 each in Great
Eastern ("New Ordinary unlisted Shares") at a price of INR 450 each (556p), to raise gross
proceeds of approximately INR 675m issued in Great Eastern will represent
(£8.3m). The New Ordinary unlisted Shares to be approximately 2.52% of the enlarged issued share
capital,
following
completion
of the Rights Issue (assuming it is fully subscribed). In
accordance with Indian Regulations, no GDR are being issued and no general offer of New
Ordinary unlisted Shares is being made in the UK.

The Great Eastern existing ordinary shares ("Ordinary unlisted Shares") are not listed and the New Ordinary unlisted Shares will not be listed on any stock market currently, but 36,919,873 Great Eastern Ordinary unlisted Shares effectively trade through a GDR programme of 0.5 Ordinary unlisted Share for every 1 GDR on the London Stock Exchange.

The New Ordinary unlisted Shares being issued will not be listed and, the Rights Issue price per New Ordinary unlisted Share, adjusted to reflect the GDR programme (on the basis that
a GDR
represents half an ordinary unlisted share), is at a discount of
35p to the middle
market price of the GDR of the Company as derived from the daily Official List of the London
Stock Exchange on 18 November 2011, the latest date prior to the announcement.
The proceeds of the Rights Issue will be used by the Company to help finance an additional
50 wells in the Raniganj Block, for the initial investment in the new Mannargudi CBM Block and for the general corporate purposes of the Company.
The Rights Issue is being fully underwritten by YKM Holdings International Limited or its subsidiaries and associated companies ("YKMHIL"). YKMHIL is a family owned corporation controlled by Mr. Yogendra Kr. Modi and Mr Prashant Modi, being Chairman & CEO and President & COO respectively of Great Eastern.
The Depositary for the GDR programme is Deutsche Bank Trust Company Americas. In accordance with Indian regulations, no further GDR are being issued and hence no general offer will be made to GDR holders to participate in the Rights Issue, so only unlisted equity shareholders of the Company can subscribe to this Rights Issue. The Company has been
made aware that YKMHIL intends to sell up to 3,000,000 GDRs in the
company and the
Company will update the market once it receives confirmation that such disposal has taken place.
Outlook:
On 7 November 2011, Great Eastern said in the announcement of their financial figures for
the half year to 30 Septembe
2011 the following:
"2011 provides us with an opportunity to build on the success of 2010. The Raniganj Block continues to increase production, and project execution will be helped by the second rig and best-of-breed fracturing technology. We have the infrastructure in place to meet the needs of
the multiple large
industrial
customers
in the region, and consequently each increase in
production feeds directly through to revenue.
In the Mannargudi block, the Environment Clearance is in process. Work is expected to start in H1 2012, and will consist of 30 pilot production wells and 50 core holes .
In the last 30 days we have fracced 4
wells after the monsoons were
over, which should
enable us to complete up to 40 wells per year.
Looking further ahead we have an exciting drilling schedule with some 204 wells planned to
be drilled over the next six
years on
the Raniganj block alone, and
we look forward to
delivering future value for our shareholders."
Commenting on the Rights Issue, Yogendra Kr. Modi, Chairman and CEO, said:
"Alongside the proceeds raised in the Rights Issue, we are in negotiations with a number of banks to arrange further credit lines. These, taken together, will ensure we are fully funded for our work programmes for the foreseeable future."

Enquiries: Great Eastern Energy Yogendra Kr. Modi Prashant Modi Arden Partners plc

Richard Day
Adrian Trimmings

M: Communications Ann-marie Wilkinson Patrick D'Ancona

Chairman & CEO +44 (0)20 7337 1516
President & COO
+44 (0)20 7614 5917
+44 (0) 20 7920 2344

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