17th Feb 2015 09:16
LONDON (Alliance News) - Commodities trader Ambrian PLC on Tuesday said it has entered into a reverse takeover deal with Swiss trader Consolidated General Minerals PLC.
Under the conditional deal, Ambrian has agreed the merger of its Ambrian Metals subsidiary in Switzerland with the Swiss unit of Consolidated General Minerals and the subsequent acquisition of Consolidated General's shareholding in the merged entity by Ambrian.
Ambrian will pay for the deal with a token GBP1 in cash, plus 165 million in initial convertible securities and 29.1 million deferred convertible securities.
Following the deal, which constitutes a reverse takeover under AIM rules, Consolidated General Chairman Robert Adair and Chief Executive Jean-Pierre Conrad will be appointed to the board of Ambrian as chairman and CEO respectively.
"The merger with CGM Schweiz represents an exciting opportunity for all shareholders and is a culmination of Ambrian's strategy which has been developed over last 12 months with our key investors. It fulfils our objectives of broadening our activities, building our equity base and adding to our management team. The enlarged group is well placed to move forward from a significantly stronger base," said Ambrian Chairman Kevin Lyon.
The move comes after Ambrian warned it expects a big drop in second half revenue for 2014 on the back of difficult commodities market conditions.
Ambrian shares were up 23% on the deal to 8.00 pence, the best performer in the London Main Market.
By Sam Unsted; [email protected]; @SamUAtAlliance
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