Kimberly Enterprises control dispute ends

15th Mar 2016 15:50

(ShareCast News) - A sense of normalcy returned to penny stock Kimberly Enterprises on Tuesday, as a long-running dispute over the controlling interest of one of its parents was resolved.The AIM-traded Eastern European residential property developer had initially announced on 20 May last year that its controlling shareholder would become Gabay Group, after 2.87 million ordinary shares in Engel Resources and Development (ERD) were to be transferred to Gabay from previous holder GBES.ERD controls Engel General Developers, which holds 68.35% of the issued share capital of Kimberly.The transaction was delayed until 4 November, but on 5 November Kimberly's board revealed the transaction would no longer take place.On Tuesday, the board confirmed that a conditional settlement agreement had been reached between the bondholders of ERD and GBES. Under the agreement, the bondholders would withdraw their objection to the redemption of the lien over the 2.87 million shares and control would return to GBES.At 1450 GMT, shares in Kimberly Enterprises were up 125% to 0.68p.