MARCH 26, 1999
SHAREHOLDER UPDATE
Dear Shareholders:
Nearly seven years of preparation has brought Fenway International Inc. to a new beginning. With a bankable Feasibility Study, world class Environmental Impact Assessment and Financial Valuation Assessment in hand for the Palawan Cement Project as well as having the Negros Oriental Cement Project with its previously granted Environmental Compliance Certificate, Fenway is now positioned to complete its funding arrangements for both Projects.
The March 24, 1999 Exclusivity Agreement signed by Fenway, Marsson Industrial Corporation and B&B Holdings (Phils). Inc., negotiated over many months, was a major step forward in developing construction loans and obtaining export credit for payment of project engineering contracts and for the purchase of cement manufacturing equipment. Marsson Industrial Corporation is a subsidiary of Krupp-Polysius of Germany and B&B Holdings (Phils.) is a subsidiary of Bilfinger and Berger Bauaktiengesellschaft of Germany. The dollar value to Fenway from Marsson and B&B financial support and assistance amounts to some US$470 million. Fenway must provide an additional US$180 million as equity. Palawan and Negros Oriental cement projects will be managed, engineered and constructed simultaneously so the funding arrangements will also be coordinated.
Paramount to the financing and construction program start-up is the issuance of the Palawan Project Environmental Compliance Certificate (ECC) by the Philippine Department of Environment and Natural Resources (DENR). Issuance of approved ECC's by the DENR has been on hold pending confirmation of the appointment of Antonio Cerilles as Secretary of the Department. Secretary Cerilles was given unanimous approval by the Senate Commission of Appointments, March 24, 1999.
Fenway has provided the DENR with the necessary Environmental Impact Statement (EIS) and relevant documents in support of its ECC application. Fenway believes its ECC application is complete and thorough with the EIS having been conducted to very high standards by GAIA South, Inc. of the Philippines guided by internationally renowned environmental consultant Dr. Greg C. Weary of SNC Lavalin Environment Inc. of Canada. Fenway notes the strong community support for its cement projects and the Company awaits the issuance of the ECC for the Palawan Cement Project so that it may provide paying jobs to the communities where none exist today.
Corporately, Fenway has recently obtained Standard and Poors registration and has filed its application for "Reporting" status with the SEC. Acceptance as a Reporting company is expected within 60 days of filing and subsequently, Fenway will apply to NASDAQ for trading privileges as a "Small Cap" company. Coincidentally Fenway will undertake a secondary public offering to augment financial participation to Fenway's equity funding requirements of US$180,000,000.
ON BEHALF OF THE BOARD
Certain statements to this Corporate Update constitute "forward looking" statements within the meaning of section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
|
