19th Mar 2014 08:55
LONDON (Alliance News) - Craven House Capital PLC Wednesday said it has acquired a 49% stake in South African sporting goods import and distribution business Depston 1 (Pty) Ltd for USD2.0 million in new Craven House shares.
Craven House said Depston's shareholders will receive 96.0 million new Craven House shares, about 14% of its current total, for 1.25 pence each, equivalent to GBP1.2 million or, roughly, USD2.0 million.
Depston is a South African company based in Cape Town that trades under the name of 'The Bicycle Company'.
The Bicycle Company has exclusive distribution rights across South Africa for US-based Trek bicycles and Swedish clothing brand Craft.
Acting Chairman Mark Pajak said the deal represents an opportunity for Craven House to become involved in the import and distribution business in South Africa.
"TBC's management have a long and successful track record in sales and distribution to the retail clothing industry in South Africa. The two high-profile brands already signed-up by TBC provide an excellent platform to expand its business and attract further sports retailers to the region," Pajak said in a statement.
"This is demonstrated by TBC's recent success in executing an exclusive agreement to distribute the shoe brand 'Hoka One One' in South Africa. Once again we are delighted to have completed a transaction utilising the company's shares as acquisition currency. We look forward to TBC's rapid growth continuing with our support," Pajak added.
The new shares are expected to begin trading on AIM on March 25.
Craven House shares were Wednesday quoted at 0.490 pence, up 8.8%.
By Samuel Agini; [email protected]; @samuelagini
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