10th Jun 2019 10:40
LONDON (Alliance News) - Dods Group PLC on Monday confirmed that it is in advanced and exclusive discussions with bespoke software provider Merit Group about a potential merger.
The events and publishing company noted that any transaction would be financed by a combination of debt and equity in addition to Dods' existing cash resources.
On Saturday, This Is Money news agency reported that the publisher of the Houses of Parliament's in-house magazine is in talks with a rival about a GBP50 million combination.
According to the report, Dods' largest shareholder, businessman Michael Ashcroft, who has 43% stake, is said to be happy to invest up to GBP7 million as part of the Merit merger.
It was reported that Dods plans to fund the deal by raising around GBP15 million and borrowing GBP20 million.
Dods shares were trading 3.3% higher on Monday morning at 7.75 pence each, giving it a market capitalisation of GBP27.3 million.
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