Norgani in purchase process

June 2, 2006

Norgani Hotels ASA is involved in a vendor driven sales process regarding a portfolio of hotels in Finland. It is still not decided which potential buyer would take place in the final negotiations, and Norgani will revert to the market with stock exchange notification if the transaction comes through. As part of the financing of the transaction, Norgani has called for an extraordinary general meeting today at 9 a.m. and asked the shareholders of a power of attorney to increase its share capital. The board of Norgani has proposed to limit the power of attorney somewhat in relation to the proposed resolution attached the notice. The adjusted proposal is as follows;

(i) This power of attorney comes in addition to the general power of attorney on 10% of the share capital granted to the board of directors by the annual general meeting of 27 April 2006"
(ii) "Pursuant to the Norwegian act relating to Public Limited Liability Companies Section 10-14 the board is given a power of attorney to increase the share capital of the company for an amount of up to NOK 225 million. The power of attorney shall only be used in connection with equity financing of one specific transaction.
(iii) This power of attorney will expire on 30 September 2006.
(iv) The shareholders’ pre-emption rights to the new shares in accordance with the Norwegian Act relating to Public Limited Liability Companies Section 10-4, may not be derogated from.
(v) This power of attorney does not include increase of capital subscribed for non cash contributions etc, cf. the Norwegian Act relating to Public Limited Liability Companies Section 10-2.
(vi) This power of attorney does not cover a merger pursuant to the Norwegian Act relating to Public Limited Liability Companies Section 13-5.

For further information please contact the CEO of Norgani Mr. Kjell Sagstad,
tel +47 922 13 020

Contact Information

Mr. Kjell Sagstad

CEO

Norgani Hotels ASA

Contact via E-mail