19th Jan 2015 09:45
LONDON (Alliance News) - The boards of Beale PLC and English Rose Enterprises Ltd on Monday said they have reached agreement on a discounted cash offer for Beale which will value the department store company at just GBP1.2 million.
Under the terms of the deal, Beale shareholders will get 6 pence per share in cash, a discount of around 48% to the closing price of 11.5 pence on January 16. Beale shares plunged lower on the news, down 48% to 6 pence.
The board of Beale, which runs the Beales department store, said it considers the offer to be "disappointing" and said that under different circumstances it could have achieve a higher price.
But, it said, the complex capital structure of the business imposes a number of restrictions on the company as regards securing new financing, meaning it believes shareholders should consider the offer carefully and may wish to accept the bid dependent on individual circumstances.
By Sam Unsted; [email protected]; @SamUAtAlliance
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