Reference to the above mentioned subject; and in accordance with Chapter 10 of the Capital Markets Authority’s bylaws of Law No. 7 of the year 2010 on Disclosure and Transparency Agility would like to announce:
|Company Name||Agility Public Warehousing Company (K.S.C.P) (“Agility”)|
|Material Information||Agility Public Warehousing Co KSCP (“Agility”) would like to announce that it has entered into a new multi-year funded equity collar agreements with Morgan Stanley Bank-N.A., Citibank, National Association (London Branch) and HSBC Bank plc (the “Counterparties”) in relation to 8 million shares of Agility’s stake in DSV A/S (“DSV”).
These agreements will allow Agility to drawdown, within a few weeks from today, up to EURO 1.3 billion, equivalent to around KD 440 million, which will be reflected in the company’s financials.
Agility maintains every expectation of DSV’s continued success, and its management ability to drive growth and value. However, given continued market uncertainty and the significance of the DSV stake on Agility’s overall value, Agility has undertaken this hedging transaction, out of prudence, to protect the value of the investment and shareholders’ value. It is worth noting that this hedging instrument doesn’t imply that the company is selling its DSV shares. However, it enables Agility to benefit, to some extent, from the increase in the DSV share price, while at the same time limiting the impact of a possible decline in DSV stock price in the future within the agreed limits. It should be noted that this hedging instrument is funded, which means it will provide the company with EUROS 1.3 billion of relatively cheaper liquidity which will help and strengthen the company’s balance sheet.
|Impact of the material information on the financial position of the company||The collar transaction will be accounted as a fair value hedge and will be reported in the financial statements at fair value through other comprehensive income.|
Investor Relations Department