22nd Dec 2015 13:42
LONDON (Alliance News) - Distribution specialist Connect Group PLC on Tuesday said it will make a GBP8.7 million deferred payment following the strong performance of The Big Green Parcel Holding Co Ltd, which it acquired late in 2014.
Big Green Parcel's main subsidiary trades as Tuffnells Parcels Express. The GBP8.7 million deferred payment relates to the first year of the three-year earn-out period. An initial GBP113.4 million was paid for the acquisition when it was made.
Connect said it will meet the payment with about GBP4.9 million in cash, the issue of 2.2 million new shares, and a separate payment of GBP149,420 in cash roughly equivalent to dividends that would otherwise have been payable in the earn-out period on the shares being issued.
The maximum deferred payment that could fall due over the three-year earn-out period is GBP15.3 million, and Connect said about 40% of that will be comprised of new shares being issued.
Shares in Connect were up 1.8% at 170.00 pence on Tuesday afternoon.
By Samuel Agini; [email protected]; @samuelagini
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