Drake to swap shares with Libra

Drake Investments Ltd (DRA) has decided to proceed with swap of its shares with the preference share of Libra Holidays Group following shareholder approval at the Extraordinary General Meeting held on 24 March 24, 2005.

Shareholders approved the Company’s ‘Share Capital Settlement and Reorganization Plan’, subject to its endorsement by the Court, which calls for the exchange of the remaining DRA shares with Libra Holidays Group Pcl Preference shares (LBHG) at the ratio of 14 new Libra shares of CYP 1 per share for every 100 DRA shares. The preference shares will be entitled to an accumulated annual dividend of 6.5%, which will be payable to shareholders on 15 April 2005, 2006 and 2007.

LBHG holders will have the right but not the obligation to convert their preference shares into LHG shares (without any additional charge) between 1 May to 31 May 2005 and 2006.

However, any preference shares outstanding as at 31 April 2007 will be subject to a mandatory conversion into ordinary LHG shares on that date. The conversion terms call for a conversion on the lower of: (1) 80% of the weighted average price of LHG shares in the period between 1 May and 30 April of the conversion year, with a minimum conversion price of CYP 1.5 and (2) CYP 3.5 per ordinary LHG share.