City Pacific Limited (ASX: CIY) Sale of Townsville assets City Pacific has executed conditional agreements for the sale of its property and marina interests in Townsville, Queensland to an interest associated with UK financier Lord Michael Ashcroft KCMG. The specific assets being divested are: · Breakwater Pacific Pty Ltd which is the owner of Townsville’s Breakwater Marina for a sum of $18 million; and · City Pacific’s right to develop the Townsville Future Development Area (FDA) for a sum of $20.3 million plus the company will receive the release of bank guarantees of $9.2 million. Both transactions are subject to the completion of final due diligence by 16 June 2008 with settlement anticipated to occur in July 2008 where upon City Pacific will receive the full proceeds of the sales being $38.3 million. City Pacific has advised CEC Group Limited (ASX: CEG) in writing that their agreement to acquire the FDA has been terminated in accordance with the terms of the extension agreement. City Pacific continues to actively promote and negotiate with a number of interested parties including those interests associated with Lord Ashcroft in respect to the company’s other marina holdings. City Pacific Limited
CPK Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held