During the Annual General Meeting held on 29 May, it was announced that all the conditions included in the Subscription Agreement signed with Corinthia Palace Hotel Company Limited (CPHCL) and Istithmar FZE have been satsified.
As a result of the closure of this transaction, CPHCL is subscribing to 192 million shares in IHI in part settlement for the acquisition of the Corinthia Bab Africa Hotel and Commercial Centre in Tripoli and the Corinthia Towers Hotel in Prague. On the other hand, Istithmar Hotels FZE have been allotted 178 million shares, which have been 25% paid-up on subscription with the balance fully paid-up by August 2007.
The closure of this transaction triggered the cut-off date in respect of the 1 for 6 bonus share issue for close of trading as at 30 May as agreed during the Company’s Extraordinary General Meeting held on 31 January 2007. IHI will capitalise an amount not exceeding €5 million from its revaluation reserve through the issue of fully paid up bonus shares of a nominal value of €1 each to those General Public shareholders holding the 29,765,114 shares which were in issue as at 30 June 2006.
Shareholders entitled to the bonus shares have the option to sell all or part of these bonus shares back to IHI at a price of €1 each for a 6-week period ending 11 July 2007.