On 30 September 2003 as part of its refinancing arrangements Chime issued warrants over ordinary shares to the Royal Bank of Scotland ("RBS"). The warrants entitled RBS to subscribe for 8,280,320 ordinary shares in the Company (3.3% of the current shares in issue) at an exercise price of 24p per share at any time up to 30th September 2006.
Chime today announces that it has cancelled the warrants in exchange for a payment of £800,000 to RBS.
Based on the Company's closing mid market share price on 30 January 2006 of 34.25p per share, the exercise of the warrants and immediate sale of the ordinary shares on that date would have generated a profit of 10.25p per share, amounting to £848,733.
Lord Bell, Chairman of Chime said:
"We announced on 12 January 2006 that we would use some of the proceeds of the sale of our remaining shares in HHCL Group Limited to begin a share buy back programme. We believe this will result in a more efficient capital structure for the Company as well as enhancing the Company's earnings per share. The cancellation of these warrants, although not part of the share buy back programme, is consistent with this strategy".
For further information, please contact: Chime Communications: Lord Bell, Chairman Tel: 020 7861 8516 Mark Smith, Finance Director Tel: 020 7861 8620 Bell Pottinger Corporate and Financial: Robin Tozer Tel: 020 7861 3232
