Plastics Capital plc (AIM: PLA) the niche plastics products manufacturer, announced today that it has repaid the PLA4 Limited deferred consideration of £643,008.
In March 2008, Plastics Capital acquired Palagan Limited for a total consideration of £6.4 million, of which £0.5 million was deferred for two years. As set out in an announcement made in March 2010, certain Directors of Plastics Capital established a specially formed company, PLA4 Limited ("NewCo"), to pay the deferred consideration and the accumulated interest on behalf of Plastics Capital Trading Limited in consideration for Plastics Capital Trading Limited undertaking to pay NewCo this amount plus further accumulated interest before March 2013.
The payment to PLA4 Limited constitutes a Related Party Transaction pursuant to AIM Rule 13. Nick Ball, the Group Finance Director of Plastics Capital, and for the purposes of this transaction an independent director, considers that, having consulted with its nominated adviser, the terms of the transaction are fair and reasonable insofar as its shareholders are concerned.