9th Mar 2016 10:43
LONDON (Alliance News) - Aggregated Micro Power Holdings PLC on Wednesday said it has conditionally agreed to acquire Forest Fuels Holdings Ltd and will raise funds to back the acquisition.
Aggregated Micro will acquire Forest Fuels, a wood fuel supplier based in the UK, for GBP2.8 million initially, with an additional deferred consideration payable in shares dependent on certain targets being met.
To fund the deal, Aggregated Micro will place 3.2 million shares at 54.00 pence per share to raise GBP1.7 million and will issue five-year convertible notes, with a conversion price of 70.00p, to raise another GBP4.1 million. The company also intends to seek shareholder approval to issue up to GBP20.0 million in convertible notes.
Aggregated Micro shares were untraded on Wednesday, having last traded at 55.00p.
The funds will be used to cover the initial cash consideration for Forest Fuels, plus working capital costs for the combined business.
"This acquisition marks a significant development for AMP and for our strategic ambitions," said Aggregated Micro Chief Executive Richard Burrell, adding the deal will boost Aggregated Micro's position supplying renewable heat capacity in the UK.
By Sam Unsted; [email protected]; @SamUAtAlliance
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