22nd Oct 2013 14:15
LONDON (Alliance News) - In-Deed Online Group PLC Tuesday said it proposes to buy UK e-learning company Epic Group Limited for GBP16.3 million and change its name to Learning Technologies Group PLC. In-Deed currently is a web-based property conveyancing service provider.
The acquisition price will be comprised of the issue of 255 million new In-Deed shares to Epic shareholders at a price of around 5.88 pence per share, plus GBP1.3 million in cash. In-Deed currently has 20.4 million shares, so the acquisition effectively is a reverse takeover.
Epic's management team will become directors and major shareholders of the renamed the company, which is targeting annual revenues of GBP50 million in the medium term.
In connection with the proposed acquisition, two In-Deed board members, Andrew Brode and Jonathan Satchell, each have sold 14.3 million shares at 7.00 pence per share. In-Deed said the share disposals are conditional upon approval of the acquisition by shareholders at an general meeting on November 7.
Brode and Satchell each will hold 41.05% of the enlarged group following the issue of new shares and their share disposals. Satchell currently is chief executive officer of Epic Group. Brode is chairman of AIM-listed RWS Holdings PLC.
"We are delighted with the reception we have had from In-Deed's shareholders and directors who have supported the injection of our business into their listing," Satchell said in a statement.
Shares in In-Deed Online were down 22% Tuesday afternoon, trading at 7.01 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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Related Shares:
RWS Holdings