Panceltica: take-over bid could come from Barwa

Panceltica, which styles itself as “an international specialist fast track construction group” and has a listing on the London Stock Exchange, has said that a take-over is in the air though nothing has been firmed up at the moment.

The interest is coming from Middle East group Barwa Real Estate which is itself listed on the Doha Securities Market.

Barwa is both a shareholder in Panceltica and one of its two major clients.

Panceltica is building flats in a desert in Qatar for Barwa. Both phase 1 and phase 2 call for 1,000 flats.

Phase one is finished…but was late in delivery. That has given rise to conflicts that are still to be resolved.

Phase 2 is yet to start.

Last week Panceltica announced a new leader with David Ball stepping up to the post of interim chief executive on 23 April.

Ball, aged 40, has 17 years of experience working in the US residential construction industry for builders such as Lennar Corporation, KB Homes and Del Webb. 

Panceltica said that Ball has experience of light gauge construction techniques as well as in project management of large residential developments

Paul Fraser, the former chief executive officer, is unwell and it is proposed that he will resign as a director. The current chief operating officer, Will Fatherley, will also step down.

An “amicable settlement of contractual claims” between the company, Paul Fraser and Will Fatherley has been agreed in principle.  This settlement does not involve any cash payment.

Additionally Ben Bright has resigned on agreed terms as financial director with effect from 23 April.

Allan Quan has been appointed acting financial officer of the Company until such time as a new Finance Director is appointed.

Panceltica’s latest trading update said: “The financial outcome of the Barwa contract is unknown. The company has no firm indication over the extent to which the company's expectations of the variations and additional payments due from Barwa match the expectations of Barwa.

“The financial position of the company is dependent on the final determination of the contract.”

On 23 April 2009 it was announced that Ball’s appointment will entitle him to an option to subscribe for up to 750,000 new ordinary shares.