19th Dec 2019 10:15
(Alliance News) - NEX-listed Barkby Group PLC is targeted a place on the London Stock Exchange's AIM market following the reverse takeover of both a coffee chain and a property firm.
Consumer-focused hospitality group Barkby is buying Tarncourt Amit Properties Ltd, Tarncourt Ambit Ltd, and Workshop Trading Holdings Ltd for a combined price of GBP30.6 million.
Workshop Trading trades as Workshop Coffee and owns four coffee shops. It focuses on specialty coffee and coffee-related hardware, and also has an online presence. The two Tarncourt businesses specialise in property development in south-east England.
Barkby is paying overwhelmingly in shares, issuing 102.1 million new shares at a price of 30 pence each.
At the same time, the company will be raising GBP5.0 million in a share placing and separate subscription, issuing 16.7 million shares overall at the same price of 30p.
Barkby currently owns a portfolio of pubs in Gloucestershire and Oxfordshire, and also bought a luxury used-car vehicle dealership in February this year.
The three new companies to be bought are controlled by the Dickson family, made up of brothers James and Charles Dickson and their mother, Davina Dickson. Charles Dickson will become executive chair of the enlarged company.
Barkby Managing Director Rupert Fraser will remain as managing director, with Emma Dark remaining as finance director until a new chief financial officer is appointed.
Giles Clarke, who founded Majestic Wine, now Naked Wines PLC, and also Pet City, which is now part of Pets At Home Group PLC, is currently Barkby's non-executive chair, though he will step down as a director after the takeover.
Barkby, once the takeover is completed, is then looking to list on AIM in January, cancelling its NEX listing. It will have a market capitalisation of around GBP40.6 million, with 135.2 million shares in issue.
Fraser commented: "This is a transformational acquisition for the group. The enlarged group will consist of a diverse portfolio of high growth, high quality businesses, with exposure to two exciting pre-IPO businesses.
"Our strategy will enable us to accelerate and maximise opportunities within our existing businesses, whilst also continuing to source and invest in new cash generative businesses with the ability to disrupt."
"Charles [Dickson] has vast experience and an impressive track record of building profitable businesses. Together we look forward to growing our portfolio businesses and maximising shareholder value with the potential for successful exits to return capital to shareholders through dividends," Fraser continued.
By George Collard; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.