24th Dec 2015 07:39
LONDON (Alliance News) - Investing company Castle Street Investments PLC on Thursday said it has entered into advanced talks to acquire an IT managed services sector company in what would constitute a reverse takeover.
Castle Street said the acquisition is of a size which would require a large placing of new shares to supplement its existing cash resources in order to meet the acquisition price and provide additional capital for the enlarged company.
The group added its shares have been suspended, not due to the reverse takeover but as it has been 12 months since it became an investing company but has yet to implement its investing policy. Pending completion of the proposed acquisition, its shares will remain suspended.
Castle Street expects to agree definitive terms on the acquisition in January 2016, though it warned there was no certainty the deal would be completed.
By Sam Unsted; [email protected]; @SamUAtAlliance
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